Louisiana Employer's Guide to Payroll Tax Registration and Compliance

Handling payroll taxes in Louisiana requires careful attention to detail. Employers must juggle multiple tax obligations while ensuring compliance with state and local laws. Missing deadlines or miscalculating withholdings can lead to fines and unnecessary stress, making accuracy a top priority.

Each layer of Louisiana's tax structure—from state income tax withholding to unemployment insurance—comes with clear rules and responsibilities. Employers must also consider local taxes that may apply depending on the business's location. Staying on top of these requirements keeps payroll running smoothly and avoids compliance issues.

Below is a breakdown of Louisiana's payroll tax obligations, including what employers are responsible for, key filing requirements, and important considerations for local tax compliance.

Louisiana Payroll Tax Obligations

Louisiana employers must withhold state income taxes from employee paychecks and submit those payments to the Louisiana Department of Revenue. Employees provide withholding information by completing Form L-4, the Employee Withholding Exemption Certificate. Employers are responsible for calculating the correct amount to withhold based on the information provided and ensuring timely remittance.

Unemployment insurance contributions are another employer-specific requirement in Louisiana. These contributions fund unemployment benefits for workers who lose their jobs through no fault of their own. Unlike income tax withholding, unemployment insurance payments are entirely funded by the employer and are not deducted from employee wages. Employers must register with the Louisiana Workforce Commission to manage unemployment tax accounts and file reports.

Certain municipalities and parishes in Louisiana impose additional payroll tax requirements. These local taxes vary by location and may include separate forms or remittance schedules. Employers must verify whether their business falls under any local tax jurisdiction and comply with specific filing and payment rules.

Withholding Tax Requirements

Louisiana requires every employer to withhold state income taxes directly from employee wages. This obligation ensures employees meet their state tax responsibilities throughout the year without unexpected liabilities at tax time. The Louisiana Department of Revenue oversees compliance and expects accurate calculations and timely submissions.

To begin, employers must collect Form L-4, formally known as the Employee Withholding Exemption Certificate, from each employee. This document outlines the employee's filing status and claimed exemptions, giving employers the information they need to calculate withholding amounts correctly. If an employee updates their personal or tax status, a new Form L-4 must be submitted immediately to reflect those changes.

Employers are also responsible for filing payroll tax returns using the Form L-1 series. Businesses with higher withholding amounts are required to file monthly, with submissions due by the 15th of the following month. Smaller businesses with lower withholding amounts may qualify for quarterly filings, which are due by the last day of the month after the quarter ends.

Missing deadlines or submitting incorrect amounts can lead to penalties and interest charges from the Louisiana Department of Revenue. Staying on top of these obligations is non-negotiable for maintaining compliance and avoiding unnecessary costs.

Revenue Account Number Steps

Louisiana employers must apply for a Revenue Account Number through the Louisiana Department of Revenue before they can report and pay withholding taxes. This registration is a required step for compliance with Louisiana state payroll taxes and how to register for taxes. Without the account number, businesses cannot legally remit state income tax or file the necessary tax returns.

The application process is simple and can be completed online, which is the fastest method. Follow these steps to secure your Revenue Account Number:

Access the Louisiana Department of Revenue's Online Registration Portal: Begin by locating the business registration section on the department's official website. Be sure to select the option for new accounts.
Provide Business Information: Fill out the form with the legal business name, federal Employer Identification Number (EIN), business address, and a primary contact. Double-check the details to avoid any errors that could delay approval.
Select Withholding Tax as the Tax Type: Indicate that your business will file and remit withholding taxes. This ensures the account is properly set up to manage payroll tax obligations.
Submit the Application: Review the information for accuracy, then submit it directly through the portal.

Once submitted, the Louisiana Department of Revenue issues the Revenue Account Number, which serves as the identifier for all state payroll tax filings. Keep the number readily available for payroll processing and tax reporting.

Unemployment Insurance Requirements

Louisiana employers are required to contribute to the state's unemployment insurance program to assist workers who lose employment through no fault of their own. The Louisiana Workforce Commission (LWC) manages unemployment insurance compliance and oversees employer contributions. Businesses must register for a Louisiana Unemployment Insurance (UI) Account Number immediately after hiring their first employee in the state.

The LWC assigns unemployment tax rates based on a business's industry and experience rate. Employers new to Louisiana typically start with a standard new employer rate, which remains in effect until the LWC calculates an individualized rate based on the employer's payroll and claims history. Failing to register for an account or comply with unemployment insurance requirements can lead to fines and interest charges, so timely registration and payments are non-negotiable.

Unemployment Payment Methods

Employers must file quarterly wage reports using Form LWC ES-4 to report employee wages and calculate unemployment tax contributions. The LWC requires these reports to be submitted either online through its secure portal or by mail if electronic filing is not an option.

Unemployment tax payments must be sent electronically through the LWC portal or an approved payment system. Electronic submissions are processed faster and help avoid delays. Missing payment deadlines results in penalties and accumulating interest, which can create unnecessary financial strain for businesses. Filing reports and paying contributions on time ensures compliance and keeps payroll operations running smoothly.

Filing Deadlines and Payment Options

Louisiana requires employers to meet specific deadlines for payroll tax filings and payments. Staying organized and understanding the filing schedule is essential to avoid penalties or interest. Filing frequencies and payment methods are determined by the employer's tax liability and payroll size.

Quarterly Filing

Most businesses in Louisiana follow a quarterly schedule for payroll tax obligations:

Withholding Tax (Form L-1): Employers must file Form L-1 by the last day of the month following the end of each calendar quarter. For example, taxes withheld during the first quarter are due by April 30.
Unemployment Wage Reports (LWC ES-4): Quarterly unemployment wage reports must also be submitted by the last day of the month after the quarter ends. These filings must include detailed wage data for all employees.

Quarterly filing is common for businesses with moderate tax liabilities. Employers should verify their filing frequency requirements with the Louisiana Department of Revenue and Louisiana Workforce Commission.

Monthly Filing

Businesses with higher withholding tax liabilities must file monthly. Monthly returns are due by the 15th of the month following the reporting period. For instance, withholding taxes collected in January must be reported by February 15. The Louisiana Department of Revenue notifies businesses if they are subject to monthly filing requirements.

Electronic Filing

Louisiana promotes electronic filing for payroll tax returns. The Department of Revenue and Workforce Commission offer online portals for submitting Form L-1 and unemployment wage reports, such as Form LWC ES-4. For many employers, e-filing is mandatory and provides faster processing along with immediate confirmation. Using these systems reduces errors and ensures compliance.

Payment Options

Employers can choose from several payment methods to meet payroll tax obligations:

Electronic Funds Transfer (EFT): Payments submitted through EFT are processed quickly and securely. Both the Department of Revenue and Workforce Commission portals support this method.
Credit Card Payments: The Department of Revenue accepts credit card payments for certain filings. However, convenience fees may apply.
Check by Mail: Employers not required to pay electronically can mail checks with the appropriate payment voucher. Payments must be postmarked by the filing deadline to avoid penalties.

Timely payments are just as important as accurate filings. Late payments quickly accrue penalties, so preparing ahead ensures compliance with Louisiana payroll tax requirements.

Federal Requirements for Louisiana Employers

Employers in Louisiana must follow federal payroll tax regulations, including FICA, alongside state obligations. These federal requirements cover Social Security, Medicare, federal income tax withholdings, and unemployment tax contributions. Accurate calculations and timely payments are required to avoid penalties.

Every paycheck must reflect deductions for Social Security and Medicare taxes. Employers are responsible for withholding 6.2% for Social Security and 1.45% for Medicare from employee wages. Employers also match these amounts, doubling the contribution. For wages exceeding $200,000, employees owe an additional 0.9% Medicare tax, which employers do not match. These withholdings form a key part of federal payroll tax compliance.

The Federal Unemployment Tax Act (FUTA) adds another layer of responsibility for employers. FUTA contributions fund unemployment benefits at the federal level and apply to the first $7,000 of wages paid to each employee annually. The standard rate is 6%, but many employers qualify for a 5.4% credit by meeting state unemployment tax requirements. This credit reduces the effective FUTA rate to 0.6%.

FUTA taxes apply if an employer paid $1,500 or more in wages during any calendar quarter or employed at least one worker for part of a day in 20 different weeks during the year. Payments are required quarterly if the liability exceeds $500. Balances under $500 can roll forward to the next quarter. All FUTA payments must be made electronically through the Electronic Federal Tax Payment System (EFTPS).

Using the EFTPS system simplifies federal tax compliance. Employers can file and pay both FICA and FUTA taxes electronically, reducing errors and ensuring records are accurate. Paired with Louisiana's state-level filing systems, EFTPS helps streamline payroll processing for businesses managing multi-layered tax obligations.

Additional Resources for Employers

Managing payroll taxes in Louisiana means tapping into the right resources to stay compliant and avoid unnecessary complications. State and federal agencies offer specific tools and platforms to help employers handle registration, filings, and payments efficiently. Below are the most important resources every Louisiana employer should know.

Louisiana Department of Revenue

The Louisiana Department of Revenue handles all state income tax withholding requirements. Employers must interact with this agency to register accounts, file returns, and remit payments.

Use the Louisiana Taxpayer Access Point (LaTAP) to register for a Revenue Account Number, which is required for withholding tax filings.
File state withholding tax returns, such as the L-1 series, and make payments directly through LaTAP.
Update business information, including changes to your federal Employer Identification Number (EIN) or address, through the same portal.

LaTAP streamlines most withholding tax processes, keeping everything organized in one place.

Louisiana Workforce Commission

The Louisiana Workforce Commission (LWC) oversees unemployment insurance contributions and wage reporting. Employers must register and maintain an active account to comply with state unemployment tax laws.

Register for a Louisiana Unemployment Insurance Account Number through the LWC Employer Portal.
Submit quarterly wage reports (Form LWC ES-4) online and manage contribution rates based on your industry and experience rating.
Access detailed guidance on unemployment tax rates and dispute resolution if discrepancies arise.

The LWC portal ensures accurate reporting and timely payments, helping employers avoid penalties.

Internal Revenue Service (IRS)

Federal payroll obligations like Social Security, Medicare, and FUTA taxes fall under the IRS’s jurisdiction. Employers must manage these alongside Louisiana's state-specific requirements.

Refer to Circular E (Publication 15) for clear instructions on federal withholding calculations and thresholds.
Use the Electronic Federal Tax Payment System (EFTPS) to file and pay FICA and FUTA taxes electronically.
Access IRS resources for guidance on additional Medicare taxes and federal unemployment tax credits.

The IRS provides straightforward tools to simplify federal tax compliance while integrating with Louisiana's payroll processes.

Online Services

Reliable online portals make payroll administration faster and more efficient. Louisiana employers can rely on several systems tailored to both state and federal requirements.

LaTAP: Register, file, and pay state withholding taxes through the Louisiana Department of Revenue's secure platform.
LWC Employer Portal: Handle unemployment insurance registration, wage reporting, and tax rate management.
EFTPS: File and pay federal payroll taxes, including Social Security and federal unemployment, through this secure electronic system.

Using online systems reduces errors, increases efficiency, and ensures deadlines are always met. Logging in regularly keeps you informed of updates or changes to payroll requirements.

FAQ for Louisiana Employers

Navigating Louisiana state payroll taxes and how to register for taxes can seem like a lot to manage, but the process becomes clear once you understand each requirement. Below, you'll find straightforward answers to common questions about registration, withholding, and compliance for employers in Louisiana.

How to register for withholding tax in Louisiana?

Employers must obtain a Revenue Account Number from the Louisiana Department of Revenue to report and remit state withholding taxes. The quickest way to apply is through the Louisiana Taxpayer Access Point (LaTAP), where you can complete the online application in minutes. This method ensures faster processing, often within a few business days.

If applying online isn't an option, Form R-16019 can be submitted by mail. However, mailed applications take longer to process, which may delay your ability to comply with withholding tax requirements. Using the online system is strongly recommended to avoid unnecessary delays.

How do I register as an employer in Louisiana?

Registration as an employer in Louisiana involves two separate steps. First, register with the Louisiana Department of Revenue to set up a Revenue Account Number for reporting income tax withholding. Next, register with the Louisiana Workforce Commission to obtain a Louisiana Unemployment Insurance (UI) Account Number for unemployment tax reporting.

Each agency requires its own registration, and both are mandatory once employees are hired in Louisiana. Completing both registrations ensures you're ready to comply with state payroll obligations from day one.

How much is Louisiana state payroll tax?

Louisiana payroll tax rates depend on employee income levels, filing status, and the exemptions claimed on Form L-4. The state's income tax brackets range from 1.85% to 4.25%, covering most employee wage scenarios.

Employers do not pay a separate payroll tax themselves but are responsible for calculating, withholding, and remitting the correct amount from employee wages. If your business operates in a parish or municipality with additional tax requirements, local payroll taxes may also apply.

Does Louisiana have mandatory state tax withholding?

Louisiana requires employers to withhold state income tax from all employee wages, except for employees who qualify for an exemption. Employees must claim any exemptions using Form L-4. Without this form, employers must calculate withholding based on standard tax rates and filing status.

Employers bear the responsibility of ensuring accurate withholding based on the information provided. Exemptions and reductions must follow state guidelines, and any employee updates should be reflected immediately in payroll calculations.

Which payments are non-taxable?

Some employee benefits provided to employees are exempt from Louisiana state income tax. Key non-taxable items include:

Employer-paid health insurance premiums: Contributions made by an employer for employee medical, dental, or vision insurance are excluded from taxable wages.
Qualified retirement contributions: Employer payments into retirement plans like a 401(k) are not subject to Louisiana income tax.
Expense reimbursements: Payments for qualified travel, lodging, or business-related expenses are non-taxable when properly documented.

Always confirm the tax status of specific payments by consulting state regulations or federal guidelines to ensure compliance.

Managing Louisiana payroll taxes requires attention to detail and a commitment to compliance. By understanding the state's requirements and leveraging the right resources, you can streamline payroll processes and avoid costly penalties. If you're looking for a comprehensive solution to simplify payroll and stay compliant, book a demo with GoCo today and discover how we can help you navigate Louisiana's payroll landscape with ease.