South Carolina Formula for Computing SC Withholding Tax

Formula for Computing SC Withholding Tax
Form WH-1603F
1350

STATE OF SOUTH CAROLINA

WH-1603F

DEPARTMENT OF REVENUE

FORMULA FOR COMPUTING SOUTH CAROLINA
2023 WITHHOLDING TAX

dor.sc.gov

(Rev. 11/1/22)
3478

Employers must calculate taxable income for each employee. Then, compute the amount of tax to be withheld using the
Subtraction Method or the Addition Method.
I. Compute annualized salary
Multiply weekly salary by 52 weeks to calculate the annual gross wages.
II. Calculate taxable income
Deduct from gross wages:
Personal Allowance
$0 if zero allowances claimed OR
$4,310 per personal allowance claimed
AND
Standard Deduction
$0 if zero allowances claimed OR
10% of gross wages if claiming one or more
allowances, up to $6,475 total

Example for Standard Deduction
Annualize salary: $750 per week, 3 allowances
$ 750.00 per week
X 52 weeks
39,000.00 gross wages
- 12,930.00 personal allowances (3 allowances X $4,310)
- 3,900.00 standard deduction (lesser of $6,475 or 10% of gross wages)
$22,170.00 taxable income

III. Calculate the Withholding Tax
Use the Subtraction Method or the Addition Method to calculate the Withholding Tax based on the taxable income.
SUBTRACTION METHOD:
At least:
$0
$3,330
$16,680

But less than:
$3,330
$16,680
and above

Example

Tax withheld:
0%
3%, then subtract $99.90
6.5%, then subtract $683.70

Taxable income:

Total to be withheld:

Example

ADDITION METHOD:
At least:
$0
$3,330
$16,680

But less than:
$3,330
$16,680
and above

$22,170.00
X 0.065
$1,441.05
- $683.70
$757.35

Tax withheld:
0%
Subtract $3,330, multiply by 3%
Subtract $16,680, multiply by 6.5%, then add $400.50

Taxable income:

$22,170.00
- $16,680.00
$5,490.00
X 0.065
$356.85
+ $400.50
Total to be withheld:
$757.35

IV. Calculate weekly withholding
Divide the Withholding Tax by 52 to calculate the amount to withhold from the employee each week.
Example: $757.35 DIVIDED BY 52 WEEKS = $14.56 STATE TAX PER WEEK

CONSTANTS FOR DETERMINING SOUTH CAROLINA INCOME TAX WITHHOLDING PROGRAM:
SEMIMONTHLY BI-WEEKLY

YEARLY

MONTHLY

(A)

$4,310

$359.17

$179.58

$165.77

$82.88

Maximum standard deduction - no allowances

(B)

Maximum standard deduction - one or more allowances

(C)

$0
$6,475

$0
$539.58

$0
$269.79

$0
$249.04

$0
$124.52

Maximum tax - 1st bracket

(D)

$400.50

$33.38

$16.69

$15.40

$7.70

Amount per allowance

WEEKLY