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Ezel / Tax Rulings / SC
SC SC Information Letter #21-31 Income Tax and Sales Tax 2021-12-21

How long did South Carolina extend its COVID-19 remote-work nexus and withholding relief in December 2021?

Short answer: SC Information Letter #21-31 extended through March 31, 2022 the temporary COVID-19 relief originally stated in SC Information Letter #20-11. Under that relief, a business did not establish South Carolina income- or sales-tax nexus solely because an employee temporarily worked from a different location because of COVID-19, and the original letter provided related employer-withholding guidance. This letter modifies SC Information Letter #21-22 and changes only the end date; the substantive terms remain in SC Information Letter #20-11.

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This page answers the general question as of 2021. Ezel answers yours, under current South Carolina tax law, with citations.

Disclaimer: This is an official South Carolina Department of Revenue Information Letter with NO precedential value. It extended temporary COVID-19 relief only through March 31, 2022; the operative terms are in SC Information Letter #20-11. The relief period has passed. Confirm current nexus, apportionment, and withholding law for later or permanent remote-work arrangements. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

SC Information Letter #21-31 extended South Carolina's temporary COVID-19 remote-work relief through March 31, 2022. It modified SC Information Letter #21-22, whose prior end date was December 31, 2021.

The relief originated in SC Information Letter #20-11. It addressed whether an employee's temporary COVID-related work-location change, by itself, established income- or sales-tax nexus for the employer and provided related employer-withholding guidance. This extension did not restate or change those substantive terms; the Department directed readers to #20-11 for the full relief.

The sequence stated in the letter was:

  • 20-11: March 13 through September 30, 2020;

  • 20-24, #20-29, and #21-8: later extensions;

  • 21-22: extension through December 31, 2021; and

  • 21-31: extension through March 31, 2022.

What this means for you

For a pandemic-era period ending on or before March 31, 2022, consult SC Information Letter #20-11 for the conditions and this letter for the extended end date. The relief was temporary and does not determine nexus or withholding for current remote-work arrangements.

Common questions

Q: Did this letter create new substantive relief?
A: No. It extended the relief set out in SC Information Letter #20-11.

Q: What date did this extension reach?
A: March 31, 2022.

Source

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC INFORMATION LETTER #21-31
SUBJECT:

Extended Tax Relief – Nexus and Income Tax Withholding Requirements
for Employers with Workers Temporarily Working Remotely as a Result of
COVID-19
(Income Tax and Sales Tax)

DATE:

December 21, 2021; Effective from March 13, 2020 – March 31, 2022

MODIFIES:

SC Information Letter #21-22

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public to
announce general information useful in complying with the laws
administered by the Department. An Information Letter has no
precedential value.

On May 15, 2020 the Department issued SC Information Letter #20-11 to announce
temporary relief regarding a business’s establishment of nexus (income and sales) solely
because an employee is temporarily working in a different work location due to COVID-19
and provided guidance with respect to employer withholding requirements for these
employees. The relief was first effective from March 13, 2020 through September 30, 2020,
and extended by SC Information Letters #20-24, #20-29, and #21-8. SC Information Letter

21-22 further extended the relief until December 31, 2021.

The Department is announcing that the relief set forth in SC Information Letter #20-11 will
be extended through March 31, 2022.
The full text to SC Information Letter #20-11 and the relief provided can be found on the
Department’s Law and Policy page at dor.sc.gov/policy.

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