Tax Planning 101: Update Form W-4!

SC withholding tax tables are being updated for the first time in 25 years
Employers, payroll providers and tax professionals need to prepare for a big change in South Carolina taxes coming January 1, 2017. For the first time in 25 years, the South Carolina Department of Revenue (SCDOR) is updating the State’s Withholding Tax tables.
On January 1, 2017 these new Withholding tables must be implemented in payroll systems across South Carolina. Updated tables are available on the SCDOR website at South Carolina Withholding tables will now be updated annually.
Outdated Withholding tables have led to significant over-withholding: $1.5 billion, or 21% of the State’s General Fund, in Fiscal Year 2015 alone. “Taxpayers are essentially loaning their money to the government throughout the year interest-free,” said SCDOR Director Rick Reames. The State then must turn around and return this money to taxpayers in the form of income tax refunds. “By simply updating the State’s Withholding tables annually, we will put $1 billion back in people’s paychecks over the next 10 years,” said Reames.
Click the SCDOR logo for the full article.
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