TAXES 19-18, South Carolina State Income Tax Withholding

Published: February 25, 2019
Effective: Pay Period 03, 2019

Summary

The income tax withholding for the State of South Carolina includes the following changes:

The maximum standard deduction in the case of any exemptions will increase from $3,150 to $3,470.
The exemption allowance will increase from $2,440 to $2,510.
The table for State income tax withholdings calculation will change.

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:	W-4
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 03, 2019)

Subtract the biweekly Thrift Savings Plan (TSP) 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 (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross 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 $3,470

^{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 = $2,510 x Number of Exemptions

If the Number of Exemptions Claimed Is:¹	Subtract This Amount:²
One or more	10% of annual wages or $3,470

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 $2,450	1.1%
Over $2,450 but not over $4,900	$26.95 plus 3% of excess over $2,450
Over $4,900 but not over $7,350	$100.45 plus 4% of excess over $4,900
Over $7,350 but not over $9,800	$198.45 plus 5% of excess over $7,350
Over $9,800 but not over $12,250	$320.95 plus 6% of excess over $9,800
Over $12,250	$467.95 plus 7% of excess over $12,250

Divide the annual South Carolina tax withholding calculated in step 7 by the number of pay dates in the tax year 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 and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

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