Frequently Asked Questions

Withholding Tax

1. Who must file withholding tax?

   Every employer who withholds or who is required to withhold Louisiana income tax from wages of employees must file a withholding return. Any employer who fails to withhold and pay amounts required to be withheld is personally liable for such amounts.

2. How do I register for withholding tax?

   To register for withholding tax, you must apply for a revenue account number. The fastest way to obtain a revenue account number is to apply online using the LDR Online Business Registration application. You may also complete the Application for Louisiana Revenue Account Number, Form R-16019 and mail the application to the Louisiana Department of Revenue, PO Box 201, Baton Rouge, LA 70821-0201

3. After I’m registered, what returns will I be required to file?

   Employers are required to file Form L-1, Employer’s Return of Louisiana Withholding Tax. These returns will be used to report and reconcile state income tax withheld for each quarter. Each return is designed to report and reconcile a specific quarter’s withholdings.

4. How often must I submit my withholding tax?

   Withholding taxes are required to be remitted according to the amount of total state income tax withheld from employees as follows:

   1. Less than $500 monthly must be remitted quarterly.
   2. Equal to or greater than $500 but less than $5,000 monthly must be remitted monthly.
   3. Equal to or greater than $5,000 monthly must be remitted semimonthly via electronic funds transfer.

5. When must I file Form L-1?

   Each Form L-1 covers one quarterly period and must be filed by the last day of the month following the close of the calendar quarter except for semi-monthly payers. Semi-monthly payers must file Form L-1 by the fifteen of the month following the close of the quarter. A quarterly return must be filed even if no taxes are withheld during the quarter. If wages paid to employees were not sufficient to require withholding, an L-1 return should be submitted with zero dollar amounts.

   The due dates for taxpayers with a Quarterly or Monthly Payment Frequency are:

   • 1st Quarter Due: April 30th
   • 2nd Quarter Due: July 31st
   • 3rd Quarter Due: October 31st
   • 4th Quarter Due: January 31st

   The due dates for taxpayers with a Semi- Monthly Payment Frequency are:

   • 1st Quarter Due: April 15th
   • 2nd Quarter Due: July 15th
   • 3rd Quarter Due: October 15th
   • 4th Quarter Due: January 15th

6. When will I receive a Form L-1?

   Shortly after March 20th, LDR will mail out the four Form L-1’s that will be used to report and reconcile state income tax withheld for each quarter. Each Form L-1 is specifically designed for a quarter. You must use the correct form for the quarter for which you are filing.

7. What are my filing options for Form L-1?

   You can file Form L-1 on paper if you are not mandated to file electronically. To file on paper, you may use the Form L-1 that was mailed to you, the version available on our website, or one that is printed through approved third-party software.
   
   If you want to file electronically, you can through LDR’s online service, Louisiana Taxpayer Access Point (LaTAP) Louisiana Taxpayer Access Point (LaTAP) or approved third-party software.

8. If a company pays its employees monthly, but due to the amount withheld, is required to pay LDR semi-monthly, how would the first payment of the month be handled?

   If you did not withhold income taxes during a remittance period, then you do not have to make a payment. However, if you do not withhold income taxes during the last remittance period of a quarter, you still need to file a Form L-1 and pay any taxes due after reconciling the quarter.

   For example, if you withhold no income taxes during the first 15 days of the month, then you do not have to make a payment for the first half of the month.

9. I registered for withholding tax after the mail out of Form L-1. When will I receive my Form L-1?

   Form L-1’s are mailed out to new accounts the last week of the quarter in which they registered. The mailing will contain all Form L-l‘s that you will need for the rest of the year. For example, if you registered in May, which is in the second quarter of the year, you will receive three Form L-1’s during the last week of June.

10. Can I use a Form L-1 from 2018 with a note attached to file for 2019?

    No, LDR’s withholding returns are quarter and year specific for ease of processing. If you use the wrong L-1, the return will be posted to the wrong period.

11. If an incorrect amount of withholding is paid for a period, how should it be corrected?

    Form L-1 is used to reconcile the payments made within each quarter to the actual amount of taxes withheld. Adjustments for prior quarters cannot be made in the current quarter. It will be necessary to file an amended Form L-1 for all quarters in which corrections were made. When filing an amended return, mark the appropriate box.

12. What return form should accompany my payments?
    1. Quarterly filers should attach payments to Form L-1 Employer’s Return of Louisiana Withholding Tax.
    2. Monthly filers should attach payments to Form L-1V Withholding Payment Voucher. However, income taxes withheld in the last month of a quarter (March, June, September, December) should be submitted with the L-1 return for the respective quarter.
    3. Semimonthly filers must submit payments electronically. One option is to use LDR’s online service Louisiana Taxpayer Access Point (LaTAP) .

13. When are my payments due?
    1. Quarterly payments are due on the last day of the month following the close of the reporting period.
    2. Monthly payments are due on the last day of the month following the close of the monthly period.
    3. Semi-monthly payments must be submitted electronically, and are due as follows:
       1. Taxes withheld for the first through the fifteenth day of the month are due by the end of the same month.
       2. Taxes withheld for the sixteenth through the end of the month are due by the fifteenth day of the following month.

14. What if the due date falls on a weekend or holiday?

    If the due date falls on a weekend or holiday, the return is due the next business day and becomes delinquent on the following day.

15. How often can I submit withholding tax payments?

    You may submit withholding tax payments as often as you wish during a quarter. However, payments submitted more frequently than monthly must be submitted electronically.

16. When will I receive the Form L-1V?

    Only taxpayers remitting monthly will receive a Form L-1V. This form will be mailed out around the 25th of each month. However, a Form L-1V will not be mailed out in March, June, September and December since taxpayers will utilize Form L-1 to submit their payments in these months. For example, the Form L-1V for January will be mailed out around January 25th.

    Taxpayers who are remitting quarterly will use their Form L-1 to remit their payment. Semimonthly taxpayer must submit payments electronically and therefore will not receive a Form L-1V.

17. Is there a Form L-1V available online?

    Yes, you can create an online payment voucher on our website. You will need the business name and Louisiana Account Number to create a printable voucher that can be used to mail in a payment.

    Semi-monthly filers must submit payments electronically and can do so using LDR’s online service Louisiana Taxpayer Access Point (LaTAP).

18. I have not received my forms for this year and need to make a payment. Can I use blank forms from the website for last year or wait until the forms are received by mail?

    You should wait until you receive a Form L-1V in order to make a payment. If you have not received a Form L-1V or your client has not given you the form, you can create an online payment voucher on our website. You will need the business name and Louisiana Account Number to create a printable voucher that can be used to mail in a payment. The Form L-1V is not tax period specific, only year specific; therefore you may make copies of it for future payment intervals for that year.

    Monthly payers will utilize Form L-1 to submit their third monthly payment in a quarter. Taxpayers who are remitting quarterly will use their Form L-1 to remit their payment. Semimonthly taxpayers must submit payments electronically and therefore will not receive a Form L-1V.

19. Will LDR mail out a Form L-1V every month for monthly remitters and every quarter for quarterly filers; or do we have to photocopy the form for future payment intervals?

    For taxpayers who are remitting monthly, a Form L-1V will be mailed out around the 25th of each month for that month. For example, the Form L-1V for January will be mailed out by January 25th. Since the Form L-1V is not month specific, but it is year specific, you may make copies of it for future payment intervals for that year. Monthly payers will also utilize the L-1 form to submit their third monthly payment in a quarter.

    Taxpayers who are remitting quarterly will use their Form L-1 to remit their payment. Semimonthly taxpayer must submit payments electronically and therefore will not receive a form.

20. Are corporation subsidiaries required to file separate withholding tax returns?

    No. If the subsidiary and parent corporation have the same Federal Employer Identification Number, the parent corporation may file and pay all withholding tax under the parent’s account number.

21. Are employee’s pre-tax contributions to a qualified cafeteria plan subject to withholding income tax?

    No. Since pre-tax contributions to a qualified cafeteria plan are not currently considered taxable under the Internal Revenue Code, R.S.47:111(A)(10) , provides for similar treatment thereby providing that the contributions are not subject to state withholding tax. Any changes in the Internal Revenue Code to the treatment of pre-tax contributions to a qualified cafeteria plan may impact the state withholding requirement.

22. On what income are employers required to withhold income tax?

    Employers are required to withhold income tax on all wages that are subject to Louisiana income tax as follows:

    1. Employers located in Louisiana—income tax must be withheld on all employee wages earned in Louisiana regardless of whether the employee is a resident or not.
    2. Employers located in other states that impose state income tax—the employer must withhold the other state’s tax on wages earned within the other state even if the employee is a Louisiana resident. The Louisiana resident must file a tax return and pay income tax to the other state on the income earned in that state. In addition, the resident must also file an income tax return with Louisiana and report all income earned inside and outside of Louisiana, but the resident is allowed to take credit for taxes paid to other states.
    3. Employers located in other states that do not impose state income tax—the employer must withhold Louisiana income tax on Louisiana resident employee’s wages earned in the other state because Louisiana residents are required to pay Louisiana income tax on all income earned even if the income was earned in a state that does not impose an income tax.
    The amount of Louisiana income tax to be withheld is based on the income tax withholding tables or formulas prescribed by Louisiana Administrative Code 61:I.1501 and the withholding exemptions and dependent credits provided by the employee in the Employee's Withholding Exemption Certificate, Form R-1300 (L-4). If the employee fails to provide a certificate, income tax should be withheld on all wages paid.

23. If I am required to withhold federal income tax on the wages of my household employee, am I required to withhold state income tax on those same wages?

    Yes. Unless the wages are specifically exempt from federal income tax, as provided under R.S.47:111(A)(10), wages paid to a household employee will be subject to Louisiana withholding tax.

24. Does Louisiana require withholding on pensions, retirement income, and annuities?

    Withholding income tax on pensions, retirement income, and annuities is not required as provided under R.S 47:111(A)(9) . However, a recipient may request that withholding tax be deducted from those sources of income.

25. Are supplemental wage and vacation payments subject to withholding?

    Yes. R.S. 47:111(A) defines wages as all compensation paid for services performed by an employee for an employer, including the cash value of all compensation paid in any medium other than cash. Based on this definition, supplemental wage and vacation pay would be subject to income tax withholding the same as the employee’s regular payroll even if the supplemental wage or vacation pay was paid separately.

26. What is Form L-3 and when is it due?

    Employers are required to file Form L-3, at the end of the year or if a business terminates during the year. Form L-3 is a cover letter used to submit copies of Federal Form W-2 to LDR. The due date to file Form L-3 is January 31st. If an employer fails to submit copies of the employees W-2s with Form L-3, a penalty of $5 per W-2 statement, not to exceed $7,500, may be imposed.

27. When will I receive the Form L-3?

    A Form L-3 will be mailed out during either November or December of this year.

28. Are employers required to file Form L-3 and the employees’ W-2 forms electronically?

    Yes. If you are required to file 50 or more Forms W-2, you must file all Information Returns electronically. If you withhold income taxes on gaming winnings, you must file the Forms W-2G electronically. See Louisiana Administrative Code 61:I.1525 – Withholding Requirement for Gaming Winnings. If you are required to e-file but fail to do so, you may incur a penalty.

29. How do I submit a corrected W-2?

    As an employer, you should submit an amended L-3. You will need to complete the L-3 as if you had not filed the original and attach only the corrected W-2.
    
    If you received a Form W-2c from your employer, you may have to file an amended return with Louisiana if you meet one of the following conditions:

    1. You filed an amended federal individual income tax return, Form 1040X; or
    2. The state wages or income tax withheld was changed on the Form W-2c.

30. One of our employees is a military spouse who has filed Form L-4E and is claiming the Military Spouse Income Tax Exemption. On the W-2 that we file with Louisiana, should we show their Louisiana Wages in Box 16, State wages?

    On the W-2 that you give the employee and also file with Louisiana, you should show the state that the income is taxable to in Box 15 and the amount that is taxable to that state in Box 16.

31. The recipient of Copy 1 of a 1099-MISC is listed as the State Tax Department. Should the form be mailed to LDR?

    Yes. Paper copies of Form 1099 MISC should be attached to a Form L-3 and mailed to:

    Louisiana Department of Revenue
    P. O. Box 201
    Baton Rouge, LA 70821-0201

    Form 1099 MISC can be uploaded to the Louisiana Department of Revenue’s web site through our LaWage application at the following link: https://esweb.revenue.louisiana.gov/LaWage or filed electronically through the IRS’s Combined Federal/State Filing (CF/SF) Program. (Answer revised 1/27/2021)

32. Are motion picture production companies subject to the same withholding tax filing requirements?

    Yes. The motion picture production company, motion picture payroll company or party responsible for withholding and remitting the tax are subject to the same filing requirements for Form L-1 and Form L-3. In addition, the motion picture production company, motion picture payroll company or other party responsible for withholding and remitting will need to submit a quarterly report for each motion picture production in Excel format using Form R-6165-Act 425 Quarterly Report. Form R-6165 and instructions can be found on our website.

    See Revenue Information Bulletin 16-006 (amended) for more detail and information on the withholding requirements regarding expenses claimed for motion picture investor credits.

    For more information on motion picture withholding procedures, see the online education course “2019 Loan Out Company Withholding Tax Instructions”.

33. How can I get a copy of my tax return?

    Taxpayers may request copies of any tax return or other previously filed document by completing a Tax Information Disclosure Authorization, Form R-7004. Instructions for the form can be found here.

    The research fee for copies of tax returns authorized by R.S. 47:1507 are as follows:

    1. $15.00 for a copy of any tax return or other document for each year or tax period requested, regardless of whether the requested return or document is located.
    2. $25.00 for each certified copy of any return or other document for each year or tax period requested, regardless of whether the requested return or document is located.

    All research fees for copies must be paid when you submit the Tax Information Disclosure Authorization, Form R-7004. Payments can be by check or money order made payable to the Louisiana Department of Revenue. Cash cannot be accepted. Credit card payments can be submitted in Louisiana File Online.