My Letter to the SC Department of Revenue

Hello,

I am in the process of completing taxes for our babysitter and have appreciated the Federal guidance for Household Employers (IRS Pub 926) while navigating withholding for Social Security, Medicare, FUTA, and Federal income tax.

Although the staff at the SC Dept. of Revenue have been helpful, it has been frustrating to figure out the SC State expectations for household employers. I have not found any guidance on the DOR website and have been confused by several parts of the process (e.g., obtaining a employer number to put in box 15 of the w2, only to learn that I should cancel that account because I am not required to withhold). Please recall that some household employers are not savvy business owners but are trying to meet their legal and ethical obligations to their employees and to government agencies.

I would like to recommend that the SC DOR publish guidance for household employers to aid citizens. It would be especially helpful if the examples used in such a publication followed the same examples used in IRS Pub 926 to provide continuity when completing an employee’s w2 (i.e., the “Mary Jones” example in pub 926). Additional information that would be helpful to provide is listed below:

1. A list of forms employer’s are required to complete (w2 and wh1612?)

2. A timeline for submission of all forms

3. Guidance for different situations (i.e., electing to withhold vs. not withholding)

4. Clarification on boxes 15-20 of the employee’s w2, specifically:

a. Whether household employers who are electing not to withhold need a state ID number (box 15). I have heard two different things from DOR staff

b. Whether box 16 (state wages) should correspond to box 1 (direct wages + Social Security and Medicare withheld) or boxes 3 and 5 (direct wages). This is where continuity using the example from Pub 926 would be especially helpful.

c. What, if anything, to put in box 17

d. Whether you are required to complete boxes 18-20 (TurboTax says no)

5. Guidance on any documentation/reporting required when completing the employer’s own state tax return.

Thank you for your time.

what I'm doing here...

Basically, I'm creating this blog to share profundities like, "Why is Laguardia the only airport in the country that doesn't use touch-free paper towel dispensers?" and other similar observations I make as I trip along in the world. I guess another goal is to share with possibly likeminded (or at least interested) others who are also learning to adjust to living in the bizarro world of Charleston, South Carolina. I know there are others out there like me (we usually confess after a few drinks), who came for work/spouse's work and are incredulous that they've landed here, and are trying to figure out how to succeed emotionally as a reluctant transplant.

So, the Charleston thing was the impetus for writing this blog. I've realized that I think and talk about my thoughts on this issue much too often for my friends and family to tolerate with good humor and so I need another outlet. I probably won't even talk about Charleston too much since I've created a fairly insulated lifestyle from the things that drive me nuts. So besides the occasional "wtf???" regarding ole chazz, this blog will probably focus on other things I am interested in like (1) politics/news/culture issues, (2) commentary a la the LGA question above, (3) chatty cathy stuff about family, work, marriage, etc., and (4) restaurant reviews of Charleston (I eat out a lot and one good thing about CHS is its restaurants).

Thanks for reading!