TAXES 18-22, Louisiana State Income Tax Withholding

Published: March 05, 2018
Effective: Pay Period 04, 2018

Summary

The income tax withholding formula for the State of Louisiana will change as follows:

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

LA

State Tax Withholding State Code:

22

Acceptable Exemption Form:

L-4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S/0/M, Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

None

 

Withholding Formula (Effective Pay Period 4, 2018)

  1. Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Apply the annualized gross pay computed in step 4 to the following tables to determine the annual gross tax amount:

    Annual Gross Tax Single (Personal Exemption Zero (0) or One)

    If the Amount of Taxable Income Is:

    The Amount of Louisiana Tax Withholding Should Be:

    Over $0 but not over $12,500

    2.10%

    Over $12,500 but not over $50,000

    $262.50 plus 3.90% of excess over $12,500

    Over $50,000

    $1,725.00 plus 5.55% of excess over $50,000

    Annual Gross Tax Married (Two Personal Exemptions)

    If the Amount of Taxable Income Is:

    The Amount of Louisiana Tax Withholding Should Be:

    Over $0 but not over $25,000

    2.20%

    Over $25,000 but not over $100,000

    $550.00 plus 3.95% of excess over $25,000

    Over $100,000

    $3,512.50 plus 5.64% of excess over $100,000
  6. Determine the annual exemption amount by applying the following guidelines:

    If the Employee Is Claiming Status As:

    Then the Annual Exemption Allowance Should Be:

    Zero - Personal Exemption Code (0) zero

    $0

    Single - Personal Exemption Code S

    $4,500

    Married - Personal Exemption Code M

    $9,000

    If the employee claims any dependent exemptions, multiply each by $1,000 and add this to the annual exemption amount computed above.

    Note: The personal exemption code is based on the marital status in the first position of the exemption code recorded on the Information/Research Inquiry System (IRIS), Program IR105, State Tax, and the dependent exemptions are the last two positions of the exemption code on IRIS Program 105. For example, if the employee has an exemption code of M02, they would receive an annual exemption amount of $11,000, which is $9,000 for Married and $2,000 for the two dependent exemptions.

  7. Apply the annual exemption amount computed in step 6 to the following tables to determine the annual tax credit:

    Annual Tax Credit Single (Personal Exemption Zero (0) or One)

    If the Amount of Taxable Income Is:

    The Amount of Louisiana Tax Withholding Should Be:

    Over $0 but not over $12,500

    2.10%

    Over $12,500

    $262.50 plus 3.90% of excess over $12,500

    Annual Gross Tax Married (Two Personal Exemptions)

    If the Amount of Taxable Income Is:

    The Amount of Louisiana Tax Withholding Should Be:

    Over $0 but not over $25,000

    2.10%

    Over $25,000

    $525.00 plus 3.85% of excess over $25,000
  8. Subtract the annual tax credit computed in step 7 from the annualized gross tax amount computed in step 5 to determine the annual Louisiana tax withholding amount.
  9. Divide the annual Louisiana tax withholding calculated in step 8 by the number of pay dates in the tax year to obtain the biweekly Louisiana tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal.