Did you still physically work in MI when you moved to SC? I will answer these questions based on you did.
My employer paid state income tax to MI for the whole year. My understanding is that I needed taxes to be taken out for So. Carolina starting Nov. 10. Because I haven't done that, it seems like I will get a penalty.
No, you should not get a penalty. If you continued to work in MI you will get a credit for the taxes in MI on your SC tax return.
Question: Is there a way that my employer can make the correction or will I have to get a refund from MI for the taxes paid and pay SC directly?
As stated above. If you continued to work in MI you will get a credit for the taxes in MI on your SC tax return.
Question: How do I determine the amount that SC should have gotten given that I was living in SC for a partial month? Is there a formula to use for this?
If you moved in on November 10th that is 52 days. 52/365 = 0.142 of the year. Take 0.142 X your W-2 Wages.
Part 2. MI has also paid state income tax to MI for Jan. and Feb. of 2022. Now that I know the problem, I submitted a W4 so this issue should be handled going forward.
If you're still working in MI you should continue to pay MI state tax. The Federal W-4 tells your employer about your withholding needs. States either use their own state W-4 form or the federal Form W-4.
Question: Since I already know that taxes will be underpaid for SC for 2022, what can I do to address this and pay the proper amount of taxes for Jan and Feb when I was living in SC so I can avoid a penalty in 2022?
My first question is the big one. Where are you physically working? If you're working from home you can pay an estimated tax for those two months. The Department of Revenue will provide guidance on estimated payments and forms List of Department of Revenue by state List of state DORs
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