Louisiana State Income Tax Withholding

Reference Number: NFC-22-1669929348
Published: December 1, 2022
Effective: Pay Period 23, 2022

Summary

The income tax withholding formula for the State of Louisiana has been updated. Taxpayers claiming two (2) personal exemptions must use the Married taxpayer formula.

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:

When the Employee Marital Status (EMPE-MAR-STAT) field is blank or invalid the default value used will be Single.

The Employee No Personal Exemption (EMPE-NO-PERS-EXEMPT) is used as follows:

  • 0 - no personal exemption is claimed
  • 1 - taxpayer exemption only (self) is claimed
  • 2 - taxpayer and spouse exemptions are claimed

Note: Any employee may claim two (2) personal exemptions. Employees claiming two (2) personal exemptions must use the married taxpayer formula.

Withholding Formula (Effective Pay Period 23, 2022)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Employees 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:

    NOTE: If any employee elects 2 personal exemptions, they are directed, per the State of Louisiana guidance, to select MARRIED as their Marital Status so that they will receive the proper credit for these 2 exemptions. (See the Louisiana Form L-4, Block A, Bullet #3 and also Step #3 below it.)

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

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $12,500

    1.85%

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

    $231.25 plus 3.50% of excess over $12,500

    Over $50,000

    $1,543.75 plus 4.25% of excess over $50,000

    Annual Gross Tax Married (Two Personal Exemptions)

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $25,000

    1.85%

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

    $462.50 plus 3.50% of excess over $25,000

    Over $100,000

    $3,087.50 plus 4.25% 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 (Zero (0) or One Personal Exemption)

    Annual Exemption

    Annual Tax Credit

    Over $0 but not over $12,500

    1.85%

    Over $12,500

    $231.25 plus 3.50% of excess over $12,500

    Annual Tax Credit Married (Two Personal Exemptions)

    Annual Exemption

    Annual Tax Credit

    Over $0 but not over $25,000

    1.85%

    Over $25,000

    $462.50 plus 3.50% 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) Home page. 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.

Previous Tax Bulletin

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 at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.