10 December 2019

South Carolina to develop its own Form W-4 that will include personal allowances

The South Carolina Department of Revenue announced on its website that it is developing a new SC W-4 for use starting in 2020 that will closely resemble the 2019 Form W-4, including the ability to claim personal allowances.

The Department expects the new SC W-4 to be available when it releases its 2020 state income tax withholding tables.

Once available, Form SC W-4 will be available here.

Ernst & Young LLP insights

South Carolina is one of six states (Colorado, Delaware, New Mexico, North Dakota, South Carolina and Utah) that continues to use only the federal Form W-4 for state income tax withholding purposes. All six states, except Utah, consider personal allowances in the state income tax withholding calculation; however, starting in 2020, the federal Form W-4 will no longer include a field for entering personal allowances. For this reason, South Carolina has addressed the upcoming issue by decoupling from the federal Form W-4 starting next year.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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ATTACHMENT

EY Payroll News Flash

Document ID: 2019-2168