LOUISIANA WITHHOLDING TABLES AND INSTRUCTIONS …

1 LOUISIANA WITHHOLDING TABLES AND INSTRUCTIONS FOR EMPLOYERSL ouisiana Department of Revenue R-1306 (7/09)Quick as a ClickLouisiana Taxpayer Access Point (LaTap) is the fastest and most accurate way to file and pay your WITHHOLDING with the Department of for LaTap at public document was published at a total cost of $3, Five thousand copies of this public document were published in this first printing at a cost of $3, The total cost of all printings of this document, including reprints, is $3, This document was published for the Department of Revenue, Post Office Box 201, Baton Rouge, LA 70821-0201, by the Division of Administration, State Printing Office.

2 To supply employers with WITHHOLDING TABLES and INSTRUCTIONS under authority of 47:112. This material was printed in accordance with the standards for printing by state agencies established pursuant to 43 FormsFormNumberForm TitleFiling DeadlineHow to Obtain FormR- 16019 (CR-1)Application for a LOUISIANA Tax Identification NumberN/AFile your application electronically through our Online Business Registration application, or obtain the form from our website at s Quarterly, Monthly, Semimonthly, or Annual Return of LOUISIANA State Income Tax WithheldQuarterly returns are due the last day of the month following the returns are due the last day of the month following the returns will have two periods for each month.

3 A semimonthly return is due on the last day of the month for wages paid during the first 15 day period of the same month, and a semimonthly return is due the 15th day of the following month for wages paid between the 16th day and the last day of a returns are due on or before February 28 of the following the due date falls on a weekend or holiday, the return is due the next business day and becomes delinquent the first day mailed to newly registered employers for WITHHOLDING taxes or on our website at Tax Statement - State copy of Federal Form W-2 Filed with Form L-3 on or before February 28 of the following copy of Federal Form W-2 acceptedL-3 Employer s Annual Reconciliation of LOUISIANA Income Tax WithheldOn or before February 28 of the following mailed to newly registered employers for WITHHOLDING taxes or on our website at (L-4)

4 Employee s WITHHOLDING Exemption CertificateAn employee is required to submit this certificate to his employer on or before employment begins, or within 10 days of any reduction to the number of exemptions or credits for our website at , or upon requestR-1307 (L-4E)Exemption from WITHHOLDING CertificateN/AOn our website at , or upon requestTable OF CONTeNTsINTRODUCTION .. 4 ONLINE FILING APPLICATIONS .. 4 DEFINITIONS .. 4 YOUR DUTIES AS AN EMPLOYER .. 4 WHICH FORM TO USE .. 4 WHEN TO OBTAIN A TAX IDENTIFICATION NUMBER.

5 5 PAYING INCOME TAX WITHHELD.. 5 DETERMINING THE AMOUNT OF TAX TO BE WITHHELD .. 5 WITHHOLDING FOR RESIDENTS .. 5 WITHHOLDING FOR NONRESIDENTS .. 5 SICK PAY MAY BE EXCLUDED .. 5 WAGES TO BE EXEMPT FROM WITHHOLDING TAX .. 5 PAYROLL PERIOD .. 5 SUPPLEMENTAL WAGE PAYMENTS .. 6 WITHHOLDING EXEMPTIONS AND CREDITS FOR DEPENDENTS .. 6 PENALTY FOR FALSE CERTIFICATE .. 6 FILING PERIODS FOR SUBMITTING L-1 RETURNS .. 6 ADJUSTMENTS TO WITHHOLDING TAX .. 7 COMPLETING AN AMENDED RETURN.. 7 PROVIDING RECEIPTS FOR EMPLOYEES.

6 7 RECONCILING LOUISIANA TAX WITHHELD ANNUALLY .. 8 FILING FORM L-3 .. 8 RECORDS TO KEEP .. 8 PENALTIES .. 8 INTEREST.. 8 ASSISTANCE .. 8 COMPUTER FORMULA METHOD .. 94 INTRODUCTIONThis booklet provides a summary of an employer s responsibility f o r w i t h h o l d i n g L o u i s i a n a i n c o m e t a x o n w a g e s f o r t h e i r e m p l o y e e s . It is not intended as a substitute for the actual statutes and regulations. The responsibility for WITHHOLDING income tax on wages applies to all FIlING aPPlICaTIONsLouisiana Taxpayer Access Point (LaTap) is a free online service provided by the LOUISIANA Department of Revenue that allows business taxpayers to access their accounts online, file certain reports, and make payments.

7 Use of this application is recommended for filing the L-1 return and is available at is another online application to be used to submit the L-3 Annual Reconcilation of LOUISIANA Income Tax Withheld. This application is also available at The term employer means any entity for whom an individual performs or has performed any service, of whatever nature, as an employee. An employer may be a resident or nonresident individual; a corporation, including a nonprofit corporation; partnership; trust; estate; or other unincorporated organization, group, or entity; or any entity having control of or making payment of wages on behalf of an employer.

8 Thus, for a governmental entity, the person designated as having control of or making payments of wages is considered the Every individual, whether resident or nonresident, who performs services for wages and who is subject to the will and control of an employer, is considered to be an employee for the purposes of this tax. The employer could permit the employee considerable discretion and freedom of action. Nevertheless, the employer has the legal right to control both the method and the result of the rendered services.

9 If the relationship of employer and employee exists, the description of the relationship by the parties of anything other than that of employer and employee is general, persons who are in business for themselves are not employees. For example, physicians, lawyers, dentists, veterinarians, contractors, public stenographers, and others who follow an independent trade, business, or profession in which they offer their services to the public are not Wages All types of compensation for services performed by an employee for an employer, whether paid in cash or in any other medium, that are subject to federal WITHHOLDING tax are also subject to LOUISIANA WITHHOLDING as defined in Revised Statute 47:111(A).

10 Wages for LOUISIANA WITHHOLDING purposes include all compensation for personal services, such as salaries, fees, bonuses, commissions, vacation allowances, back pay, and retroactive wage increases. Wages also include the fair market value of compensation paid other than in cash, such as property, board, lodging, maintenance, meals, or other consideration given for personal services. Payments may be based on the hour, day, week, month, year, or on a percentage plan. Although an employee must report tips or gratuities on their individual income tax return, such payments are not included as wages when they are paid to an employee by a customer.