Download This Bill in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
H. 3027
STATUS INFORMATION
General Bill
Sponsors: Reps. Viers, M.A. Pitts and Mahaffey
Document Path: l:\council\bills\agm\18638mm07.doc
Companion/Similar bill(s): 392, 1336, 3026, 3037, 3068, 3141
Introduced in the House on January 9, 2007
Currently residing in the House Committee on Ways and Means
Summary: Business expense deductibles
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
-------------------------------------------------------------------------------
12/13/2006 House Prefiled
12/13/2006 House Referred to Committee on Ways and Means
1/9/2007 House Introduced and read first time HJ-26
1/9/2007 House Referred to Committee on Ways and Means HJ-27
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3595 SO AS TO DEFINE THE TERMS "AUTHORIZED EMPLOYEE" AND "LABOR SERVICES", TO DISALLOW A DEDUCTIBLE BUSINESS EXPENSE UNDER CERTAIN CIRCUMSTANCES UNLESS THE PERSON EMPLOYED IS AN AUTHORIZED EMPLOYEE, AND TO PROVIDE EXCEPTIONS; AND BY ADDING SECTION 12-8-610 SO AS TO REQUIRE AN EMPLOYER TO WITHHOLD SIX PERCENT OF THE COMPENSATION PAID TO CERTAIN EMPLOYEES WHO FAIL TO PROVIDE CERTAIN INFORMATION RELATED TO TAXPAYER IDENTIFICATION NUMBERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3595. (A) As used in this section, the term:
(1) 'Authorized employee' means an individual authorized for employment in the United States as defined in paragraph (2) of subsection (a) of 8 U.S.C. Section 1324a.; and
(2) 'Labor services' means the physical performance of services in this State.
(B) Notwithstanding another provision of law, on or after January 1, 2008, no wages or remuneration for labor services to an individual of six hundred dollars or more per annum may be claimed and allowed as a deductible business expense for state income tax purposes by a taxpayer unless the individual is an authorized employee.
(C) The provisions of this section apply whether or not an Internal Revenue Service Form 1099 is issued in conjunction with the wages or remuneration; provided, however, this section does not apply to:
(1) a business domiciled in this State which is exempt from compliance with federal employment verification procedures under federal law which makes the employment of unauthorized aliens unlawful;
(2) an individual hired by the taxpayer prior to January 1, 2008;
(3) a taxpayer when the individual being paid is not directly compensated or employed by the taxpayer; or
(4) to wages or remuneration paid for labor services to an individual who holds and presents to the taxpayer a valid license or identification card issued by the Department of Motor Vehicles."
SECTION 2. Article 5, Chapter 8, Title 12 of the 1976 Code is amended by adding:
"Section 12-8-610. (A) Notwithstanding another provision of law, an employer paying wages to an employee is required to withhold state income tax at the rate of six percent of the amount of compensation paid to an individual which compensation is reported on Form 1099 and with respect to which the individual has:
(1) failed to provide a taxpayer identification number;
(2) failed to provide a correct taxpayer identification number; or
(3) provided an Internal Revenue Service issued taxpayer identification number issued for nonresident aliens.
(B) An employer paying wages to an employee who fails to comply with the withholding requirements of this section is liable for the taxes required to have been withheld unless the employer is exempt from federal withholding with respect to the individual pursuant to a properly filed Internal Revenue Service Form 8233."
SECTION 3. This act takes effect upon approval by the Governor.
This web page was last updated on Monday, October 10, 2011 at 1:32 P.M.