TAXES 21-17, Mississippi State Income Tax Withholding

Published: March 29, 2021
Effective: Pay Period 05, 2021

Summary

The income tax withholding formula for the State of Mississippi includes the following changes:

The standard deduction for No W-4 filed has changed from $4,600 to $2,300.
The income tax table has changed.
The default exemption based on marital status has changed to zero (0) if the employee has not filed a State W-4 form.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:	MS
State Tax Withholding State Code:	28
Acceptable Exemption Form:	89-350-20-8-1-000 (Rev. 08/20)
Basis for Withholding:	Three-digit number from special coding & Federal marital status (use Federal Standard Deduction)
Acceptable Exemption Data:	Three digits from special coding
TSP Deferred:	Yes
Special Coding:	Determine the Exemption Data field as follows: Divide the dollar amount in item 6 of the State certificate by 100. Multiply the result by 2. (Examples are 120 for $6,000, 190 for $9,500, and 240 for $12,000.)
Additional Information:	In the event that the employee does not file a State Withholding Allowance Certificate, then Single and zero personal exemptions (S00) will be used as the basis for withholding.

Withholding Formula (Effective Pay Period 05 , 2021)

Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annualized wages.
Determine the standard deduction by applying the following guideline and subtract this amount from the gross annualized wages to compute the taxable income:

If the Employee Is:

The Standard Deduction Is:

No W-4 has been filed

$2,300

Single

$2,300

Married

$4,600

Head of Household

$3,400
Subtract the Personal Exemptions from annualized taxable wages.
1. Standard personal exemption amount based on W-4 marital status:
  
  If the Employee Is:
  
  The Standard Personal Exemption Is:
  
  No W-4 has been filed
  
  $0
  
  Single
  
  $6,000
  
  Married
  
  $12,000
  
  Head of Household
  
  $9,500
2. Multiply exemptions by $1,500 each.
3. Employee-specified personal exemption amount.
  Note: The exemption allowance is the "Total Amount of Exemption Claimed" entered in Item 6 on the Mississippi tax withholding Form 89-350-20-8-1-000 (Rev. 08/20).

If the Employee Is:	The Standard Deduction Is:
No W-4 has been filed	$2,300
Single	$2,300
Married	$4,600
Head of Household	$3,400

If the Employee Is:	The Standard Personal Exemption Is:
No W-4 has been filed	$0
Single	$6,000
Married	$12,000
Head of Household	$9,500

Apply the taxable income in step 6 to the following table to determine the annualized Mississippi tax withholding:

Tax Withholding Table

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $4,000	$0
Over $4,000 but not over $5,000	$0.00 plus 3.00% of excess over $4,000
Over $5,000 but not over $10,000	$30.00 plus 4.00% of excess over $5,000
Over $10,000	$230.00 plus 5.00% of excess over $10,000

Divide the annualized Mississippi tax withholding calculated in step 7 by the number of pay dates in the tax year and round to the nearest dollar to obtain the biweekly Mississippi tax withholding.
Add the additional amount or percentage elected by the employee to the pay period tax calculated in step 8 and round to the nearest dollar to determine the amount of tax to be withheld for the pay period.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.