Louisiana Salary Paycheck Calculator
If Louisiana payroll taxes leave your mind spinning in circles like a Gulf of Mexico hurricane, you’re not alone. While hurricanes can wreak havoc on the Louisiana landscape, payroll taxes don’t have to leave your small business in shambles.
Calculating payroll involves more than writing checks to your employees. There are tax rates, deadlines, and tax forms to keep straight. To help calm the payroll tax waters, we’ve answered the most commonly asked questions about Louisiana payroll taxes and paycheck rules below.
Louisiana payroll taxes and paycheck rules
How do employers calculate withholding tax for Louisiana employees’ paychecks?
Employers should start by having all employees complete Form L-4, Employee’s Withholding Allowance Certificate, when they start working for you. Employees should update their forms when they have life events that impact the amount of tax they will owe.
Using information from Form L-4, you’ll use your worker’s pay amount and Louisiana’s withholding tables or withholding tax formula to calculate the amount of tax to take out.
How is withholding tax paid to the state?
Depending on how much tax you withhold each month, you’ll pay quarterly, monthly, or semi-monthly.
|Louisiana Withholding Tax Payment Frequency|
|Withholding Tax Per Month||Payment Frequency|
|$0 – $499||Quarterly|
|$500 – $4,999||Monthly|
Louisiana requires all payments greater than $5,000 to be made electronically.
Along with paying the tax, employers need to file quarterly payroll tax reports on Form L-1, Employer’s Return for Louisiana Withholding Tax. Be sure to file a report for all quarters, including those when no tax is withheld.
Also, an annual summary report using Form L-3, Transmittal of Withholding Tax Statements, is required each year. Employers need to send copies of Form W-2, Wage and Tax Statement, and Form 1099 with their annual report.
How is Louisiana’s unemployment tax calculated?
Louisiana uses a wage base of $7,700 for unemployment tax calculations. The wage base is the maximum amount of each employee’s pay that is subject to tax each year, and it can change.
New Louisiana employers pay tax rates based on their industry’s average rate for up to the first 45 months of reporting. Then your business is assigned an experience rate that reflects how your company uses the unemployment program. Experience rates range from 0.09% to 6.20% and the tax is paid quarterly. Employers can pay the tax online or via paper check, but quarterly wage reports need to be filed online.
What’s the salary threshold in Louisiana?
Because the state of Louisiana doesn’t have its own salary threshold, it adheres to the federal salary threshold, which is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
When are new hires reported to the state?
When is Workers’ Compensation insurance required in Louisiana?
Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
When do employers need to give final paychecks to employees?
Louisiana requires employers to provide final wages to employees the earlier of:
- The next regularly scheduled payday or
- 15 days after separation
Does Louisiana require employers to provide paid time off to employees?
Employees summoned for jury duty must be given time off to serve. And in some cases, the jury duty leave must be paid.
Federal payroll taxes in Louisiana
In addition to Louisiana state taxes, employers are also required to pay federal taxes.
Do employers need to pay federal unemployment tax if they pay unemployment tax to the state?
Yes. Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but many employers only have to pay 0.6% each year.
How do employers calculate federal withholding tax?
Federal withholding tax is calculated using the employee’s pay amount and information from Form W-4, Employee’s Withholding Certificate. Have employees complete Form W-4 when they start working for you and update it whenever their tax situation changes.
The information on Form W-4 includes the employee’s tax filing status and their number of dependents. You’ll use this information along with the federal tax tables to determine how much tax to take out.
How are Social Security and Medicare taxes calculated?
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
How is Additional Medicare tax charged?
Some employees will need to have the Additional Medicare tax taken out of their paycheck. For employees earning more than $200,000 per year, employers need to withhold 0.9% on wages over $200,000.
How are federal payroll taxes paid?
The IRS encourages employers to pay their payroll taxes via EFTPS. The frequency that you’ll make tax payments depends on how much tax you owe in a year.
Annual or quarterly payments
Federal unemployment tax is usually paid annually. However, some employers will need to make quarterly payments. You’ll file Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, each time you make payment.
Monthly, semi-weekly, or next-day payments
The other federal payroll taxes (FICA, Additional Medicare tax, and federal withholding tax) are generally paid monthly or semi-weekly, but some employers with large dollar payrolls may need to make next-day payments.
All employers file payroll tax reports quarterly using Form 941, Employer’s Quarterly Federal Tax Return.
Calculating your payroll and payroll taxes is essential to running a successful small business. If you’re looking for a partner to help you with all your payroll and employee needs, try Gusto. Gusto makes it easy to pay your employees and keep your business in compliance with payroll tax rules—freeing up your time to grow your business.