Louisiana Payroll Instructions

Louisiana has state income tax withholding. Rates did not change in 2023. Withholding formulas have changed 5 times in the past 33 years.

Louisiana state calculates payroll withholding tax amounts with a 'step' tax table that is similar to the federal tax "formula method" tables. They use text and math formulas to explain the steps and exemptions. Unfortunately, that makes it more difficult than other states. Sometimes a simple table is worth a thousand words!

Louisiana is the only state with regressive tax percentages. Their tax rates decrease as income increases. It really sticks it to their poor people, especially because sales tax and most other taxes are also regressive.

HINT: TurtleSoft provides free annual updates for US federal and Louisiana tax withholding rate formulas.

Louisiana State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Open the Payroll tab on the left, and choose Employees.
  2. Locate the employee's record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Louisiana dependents into the State Exemptions field.
  7. Enter the number of dependency credits claimed in the Other Exemptions field. Every child and stepchild may be claimed as a dependency credit (as described in Internal Revenue Code, Section 152).
  8. Enter a Lousiana Tax Package into the Tax Package field, based on the employee’s W4 form. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. HINT: If you don't see Louisiana packages in the list, you'll need to import 2022 tax info first.
  9. Click OK.

Louisiana State Unemployment Tax Instructions

In 2023, Louisiana state unemployment insurance tax applies to the first $7,700 of wages for each employee (the same since 2010). The starting rate varies for new businesses, depending on the type of business. After two years, the rate is based on past payroll amounts and claims.

To enter your Louisiana SUTA tax rate into Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open the Louisiana SUTA item HINT: If you don't see Louisiana SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter the percentage SUTA rate for your business into the field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Other Louisiana Taxes

In the past, employers paid an SAFDST Debt Service Tax, which was a direct 1.4% tax on each employee’s gross wages. However we haven't seen any mention of this tax recently, so it appears to be repealed.

We are still keeping a Tax Item for it in each of the Louisiana State Tax Packages, just in case it is reinstated, but this employer tax currently calculates a zero amount.

Louisiana Marital Status

Use one of the following choices in the Marital Status popup field for each Employee account:

State Tax Contacts

Website

Little Known Louisiana Tax Fact

Louisiana residents may pay their state income tax in currency, alligator hides, or gumbo.

Use form LS-406a to accompany alternate forms of payment.

Official State Lawn Ornament

New Orleans-- Plastic beads
Elsewhere-- Alligator