Article
6 min read
Employer’s Guide to Louisiana Withholding Tax and Payroll Tax
US payroll
Author
Shannon Ongaro
Last Update
August 22, 2025
Table of Contents
Overview of payroll taxes in Louisiana
Paying unemployment insurance
Withholding personal income tax from your Louisiana employee
Paying your Louisiana workers’ compensation
Reciprocity agreements
Simplify US payroll tax compliance with Deel
Key takeaways
- Louisiana employers need to pay unemployment insurance for their workers and withhold and remit their personal income tax.
- No matter how many employees you have in Louisiana, you must provide Workers’ Compensation coverage for Louisiana employees.
- Deel Payroll streamlines US and international payroll by automating tax withholdings, contributions, filings, and regulatory updates, helping companies stay fully compliant with minimal effort.
If you're new to overseeing payroll in Louisiana, you're likely juggling multiple responsibilities—from handling federal taxes to ensuring compliance with state-specific rules around unemployment insurance, personal income tax withholding, and workers' compensation.
Louisiana payroll includes unique obligations, such as varying unemployment insurance rates by industry and the lack of reciprocity agreements affecting nonresident employees.
This guide is designed specifically for payroll managers like you, who are looking for clear, actionable guidance to stay compliant, avoid pitfalls, and confidently manage Louisiana withholding taxes and payroll taxes. From understanding employer responsibilities to navigating the state's online filing portals, we’ll walk you through everything you need to know to streamline your payroll processes.
Overview of payroll taxes in Louisiana
Employers in Louisiana are responsible for managing several types of payroll taxes, including federal income tax, FICA taxes (Medicare and Social Security), and state payroll taxes. Louisiana does impose additional local payroll taxes.
The Louisiana Department of Revenue oversees these taxes, and the Louisiana Workforce Commission (LWC) manages unemployment taxes. The Louisiana Department of Revenue and the IRS can audit tax returns.
Nonprofit organizations should note that they are subject to payroll taxes in Louisiana, even if they are otherwise tax-exempt.
Louisiana employers can file and pay payroll taxes online through the Louisiana Taxpayer Access Point (LaTAP) for income taxes and the Louisiana Wage and Tax System (LAWATS) for unemployment taxes.
Interested in other state payroll guidelines? See our state-by-state guide to payroll.
Paying unemployment insurance
As a Louisiana employer, you are responsible for withholding and paying Unemployment Insurance (UI) tax for your Louisiana employees.
Unemployment insurance (UI) tax or state unemployment insurance (SUI) tax is a national program that provides temporary financial assistance for eligible workers who become unemployed through no fault of their own. UI tax regulations vary between states, and the LWC manages UI in Louisiana.
| Employer Minimum Rate | Employer Maximum Rate | Maximum Salary (Wage Base) | Minimum Employer Contribution (per employee) | Maximum Employer Contribution (per employee) | Rate for New Employers | Notes and Additional Rates |
|---|---|---|---|---|---|---|
| 0.09% | 6.20% | US $7,700 | US $6.93 | US $477.40 | Varies by industry = 1.16% - 2.89% | N/A |
To find more information and guidance on paying your Unemployment Insurance, the Louisiana Department of Labor offers valuable resources on its website, including an FAQ page.
Withholding personal income tax from your Louisiana employee
Another important aspect of Louisiana payroll taxes is the withholding of Personal Income Tax (PIT) from your employees' wages.
Personal Income Tax, also known as individual income tax or state income tax, is a tax on the income of Louisiana residents. As an employer, you are responsible for deducting this tax from your employees’ wages and then remitting it to the state.
For tax years beginning on or after January 1, 2025, Louisiana's personal income tax rate will be 3.0% on all income. Previously, the Louisiana individual income tax was imposed at: 1.85% rate on income up to $12,500. 3.5% on income $12,500–$50,000.
To ensure compliance with the state's regulations, you must register your company with the Louisiana Department of Revenue and pay the amount you withhold from your employees' wages. Depending on the amount you withhold, you will need file quarterly, monthly, or semi-monthly.
Louisiana provides an online portal that facilitates this process, making it more convenient for employers to fulfill their PIT obligations.
To find more information on how to handle withholding Personal Income Tax, refer to the Louisiana Department of Revenue's Withholding Tax page.
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Paying your Louisiana workers’ compensation
Employers in Louisiana are also required to pay for workers' compensation insurance.
Regardless of the number of employees, all businesses are obligated to provide Workers' Compensation coverage for their workforce. Workers' compensation is a form of insurance that protects employees in the event of an injury or accident that occurs while they are performing their job duties.
To ensure compliance with this aspect of Louisiana's regulations, employers must secure workers' compensation coverage from a qualified commercial carrier within the state. To find a qualified commercial carrier, the Louisiana Department of Labor provides helpful information on its FAQs page.
Reciprocity agreements
Louisiana does not currently have reciprocity agreements with other states, which affects withholding obligations for nonresident employees.
Deel US Payroll
Simplify US payroll tax compliance with Deel
While this guide provides essential information on Louisiana payroll taxes, federal and state requirements extend beyond what is covered above.
To streamline the process and ensure full compliance, companies can turn to Deel US Payroll. For more compliance, benefits, and HR support, try Deel PEO.
Watch the video below to hear how Strada uses Deel US Payroll to streamline operations across the US.
Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can simplify your US payroll processes and ensure compliance with state regulations.
FAQs
Does Louisiana have mandatory state tax withholding?
Yes. Louisiana requires employers to withhold state income tax from wages earned by employees who perform services within the state, regardless of the employee’s residency, unless specific exemptions apply.
What determines state tax withholding in Louisiana?
Louisiana state tax withholding depends on an employee’s earnings in Louisiana and their withholding allowances declared on Form L-4.
Employers must apply the employee’s filing status and whether they've chosen the standard deduction when calculating withholding. For 2025, Louisiana uses a flat tax rate of 3.09% and new standard deduction amounts.
Nonresident employees who work in Louisiana for more than 25 days in a calendar year generally require withholding unless exempt under mutual state agreements.
How do I calculate my Louisiana withholding tax?
To determine your withholding tax:
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Calculate your gross wages per pay period.
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Subtract any applicable nontaxable deductions (e.g., pre-tax health insurance contributions).
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Deduct the appropriate standard deduction amount: $12,500 for Single or Married Filing Separately; $25,000 for Married Filing Jointly or Head of Household. If opting out, use $0.
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Apply the 3.09% flat tax rate to this amount: Tax Withheld = (Gross pay - Deduction) x 0.0309
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Divide your annual withholding tax by the number of pay periods to determine the withholding per paycheck. Louisiana provides detailed withholding tables and formulas.
Does Louisiana have a state withholding form?
Yes. Louisiana’s Employee’s Withholding Allowance Certificate is Form L-4. Employees complete this form to indicate filing status, select a standard deduction, and adjust withholding allowances for accurate state tax withholding.
How do I obtain a Louisiana withholding tax number?
Employers must register with the Louisiana Department of Revenue to receive a withholding account number. Registration can be completed online through the Louisiana Taxpayer Access Point (LaTAP) or by submitting Form R-16019.
Does Louisiana require nonresident withholding?
Yes, but subject to the 25-day rule. Nonresident employees who physically work in Louisiana for more than 25 days within a calendar year must have state income tax withheld, retroactively applied to all days worked in-state for that year.
What is exempt from Louisiana state withholding?
Exemptions from state withholding in Louisiana include:
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Employees who will not exceed the 25-day threshold for nonresident withholding.
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Employees who qualify for exemption based on the criteria detailed in Form L-4.
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Nonresident employees covered by mutual state exemption agreements.
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Specific exempt categories as outlined by Louisiana’s exemption guidance and Form L-4 instructions.
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
