TAXES 17-17, South Carolina State Income Tax Withholding

Published: March 30, 2017
Effective: Pay Period 06, 2017

Summary

The income tax withholdings for the State of South Carolina will change as follows:

The maximum standard deduction in the case of any exemptions will increase from $2,600 to $2,860.
The exemption allowance will increase from $2,300 to $2,370.
The taxable wages will increase within the withholding table.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:	SC
State Tax Withholding State Code:	45
Acceptable Exemption Form:	WH 1602
Basis for Withholding:	State Exemptions
Acceptable Exemption Data:	0 / Number of Exemptions
TSP Deferred:	Yes
Special Coding:	Determine the Total Number of Allowances field as follows: First Position - Enter 0 (zero). Second and Third Positions - Enter the number of exemptions claimed.
Additional Information:	None

Withholding Formula (Effective Pay Period 6, 2017)

Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
Add taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
Determine the standard deduction by applying the following guideline and subtract this amount from the annual wages:

If the Number of Exemptions
Claimed Is:¹

Subtract This Amount:²

One or more

10% of annual wages or $2,860

^{1 Use annual wages when no exemptions are claimed.}
^{2 Use the lesser amount.}
Determine the exemption allowance by applying the following guideline and subtracting this amount from the result of step 4 to compute the taxable income:
Exemption Allowance = $2,370 x Number of Exemptions


If the Number of Exemptions Claimed Is:¹	Subtract This Amount:²
One or more	10% of annual wages or $2,860
^{1 Use annual wages when no exemptions are claimed.} ^{2 Use the lesser amount.}

Apply the taxable income computed in step 4 to the following table to determine the South Carolina tax withholding:

Tax Withholding Tables

If the Amount of Taxable Income Is:	The Amount of South Carolina Tax Withholding Should Be:
Over $0 but not over $2,140	$0.00 plus 1.7% of excess over $0
Over $2,140 but not over $4,280	$36.38 plus 3% of excess over $2,140
Over $4,280 but not over $6,420	$100.58 plus 4% of excess over $4,280
Over $6,420 but not over $8,560	$186.18 plus 5% of excess over $6,420
Over $8,560 but not over $10,700	$293.18 plus 6% of excess over $8,560
Over $10,700	$421.58 plus 7% of excess over $10,700

Divide the annual South Carolina tax withholding by 26 to obtain the biweekly South Carolina tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.

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