SC Updates Withholding Tax Tables
For the first time in 25 years the SC DOR has updated it's withholding tables to avoid tax payers overpaying from their pay checks.
The links are below for the new tables:
Outdated Withholding Tables are a Problem for South Carolina
Outdated Withholding tax tables lead to over-withholding, which amounted to $1.5 billion in 2015. Over-withholding is all the money taken out of taxpayers' wages that was not needed to pay their state income taxes. In other words, the government took more money than it should have and must return it to taxpayers through Individual Income Tax refunds. That $1.5 billion in over-withholding has created a number of issues for the State:
- Unreliable General Fund Budgeting: A big portion of the money collected throughout the year ($1.5 billion) has to be refunded back to taxpayers.
- Unnecessary Administrative Costs: Generating, regulating, and protecting refunds is expensive.
- Undeniable Risk: Big tax refunds make South Carolina a target for income tax refund fraud and theft.
By addressing over-withholding, these problems begin to correct themselves over time, helping to create a healthier State.
Source: SC Department of Revenue