South Carolina State Tax Routine (SCTX)

The South Carolina State Tax Special Routine processing utilizes the following steps:

Line 1	Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).
Line 2	Determine the employee’s Personal Exemption Amount*.
Line 3	Determine the Taxable Amount by subtracting Line 2 from Line 1.
Line 4	Determine the Taxable Amount by further subtracting Line 3 from 10% of gross wages if claiming one or more allowances, up to $6,475 total.
Line 5	Using the Marginal Tax Rates (DEDX) entries for the South Carolina State Tax deduction, compute tax on the Taxable Amount (Line 4).
Line 6	Divide the amount on Line 4 by the number of payroll periods in a year to determine the employee’s South Carolina Withholding Tax for the pay period.

*Determine the Child Tax Exemption Amount

Take the Annual Exemption Amount on the Tax Parameters (TAXP) entry for the employee’s South Carolina State Tax deduction and Marital Status * the number of State Tax Allowances on the employee’s Employee Tax Parameter (TAX) or Employee State Tax parameter (TAXS).

Note: The South Carolina State Tax Routine is only available for sites that utilize the Next Generation Payroll service.

Data Setup Considerations

Sites need to ensure they have implemented the following Business Process/Data Setup changes at their site prior to using the South Carolina State Tax Routine.

The Tax Parameters (TAXP) setup for South Carolina State Tax Deductions.

The Annual Exemption Amount field is mapped with the Exemption Amount (Annual pay period).

The Employee Tax Parameter (TAX) enrollment (Note: this only applies to employees enrolled in a Tax Class (TAXC) that includes a South Carolina State Tax Deduction).

The State Tax Allowance field captures the employee's claim for number of allowances claimed as the exemption amount.

Note: The point 2 functions if the MULTI_STATE_TAX parameter is set to N as part of the Application Parameter (APPCTRL) page, if the parameter is set to Y, then the system function as per the point 3.

Employee enrolled in the State Tax Enrollment (TAXS) or Employee State Tax Withholding Certificate (ETAXS) (Note: this only applies to employees enrolled in a State Tax Class (TAXCS) that includes a South Carolina State Tax Deduction).

The State Tax Allowance field captures the employee's claim for number of allowances claimed as the exemption amount.