Withholding Tax

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Who Is Required To Withhold

Every employer who has resident or nonresident employees performing services (except employees exempt from income tax withholding) within Louisiana is required to withhold Louisiana income tax based on the employee's withholding exemption certificate. Wages of Louisiana residents performing services in other states are subject to withholding of Louisiana income tax if the wages are not subject to withholding of net income tax by the state in which the services are performed.

Who Must File

Every employer who withheld or was required to withhold income tax from wages must file the employer's return of Louisiana state income tax withheld. Each employer who withholds from the combined wages of all employees less than $500 per month is required to file on a quarterly basis. Each employer who withholds from the combined wages of all employees at least $500 but less than $2,000 per month is required to file on a monthly basis. Each employer who withholds from the combined wages of all employees $2,000 per month or more must file on a semimonthly basis.

Rates of Tax

Louisiana Administrative Code 61:I.1501 provides income tax withholding tables to be used for computing the proper amount to be withheld based on the employees income, filing status, and number of exemptions. The formula used to compute the withholding tables is as follows:

W = Withholding tax.
S = Salary per period.
X = Number of personal exemptions claimed for withholding; X may be 0, 1, or 2.
Y = Number of dependency credits claimed for withholding; Y may be 0 or greater.
M = Income Brackets for tax rate change.

If X = 0 or 1, then M1 = $12,500, and M2 = $25,000
If X = 2, then M1 = $25,000, and M2 = $50,000
N = Number of pay-periods per year (for example, weekly = 52 or monthly =12).

If S > 0
Then A = (S * .021)
Else A = 0

If S > (M1 / N)
Then B = .0135 [S - (M1 / N)]
Else B = 0

If S > (M2 / N)
Then C = .0135 [S - (M2 / N)]
Else C = 0

D = .021 {[(X * $4,500) + (Y * $1,000)] / N}

If [(X * $4,500) + (Y * $1,000)] > M1
Then E = .0135 {[(X * $4,500) + (Y * $1,000) - M1] / N}

If (A + B + C) - (D + E) > 0
Then W = (A + B + C) - (D + E)
Else W = 0

Date Tax Due

  1. Quarterly returns and payments are due on the last day of the month following the close of the quarterly period.
  2. Monthly returns and payments are due on the last day of the month following the close of the monthly period.
  3. Semimonthly returns and payments are due on the 15th day of the month for taxes withheld on wages paid during the period between the 16th day and the last day of the previous month and are due on the last day of the month for taxes withheld on wages paid during the first 15 days of the same month.