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Article

3 min read

Your Ultimate Guide to Louisiana Payroll

US Payroll

Author

Shannon Hodgen

Published

August 03, 2023

Last Update

June 28, 2024

Table of Contents

Paying unemployment insurance

Withholding personal income tax from your Louisiana employee

Paying your Louisiana workers’ compensation

Simplify US payroll tax compliance with Deel

Key takeaways
  1. Employers need to cover unemployment insurance for their Louisiana workers.
  2. No matter how many employees you have in Louisiana, you must provide Workers’ Compensation coverage for Louisiana employees.
  3. Louisiana facilitates tax management through online portals of the Department of Labor and Department of Revenue.

Employers must navigate various regulations and requirements to ensure proper payroll withholding in each US state.

If you're an employer with employees in Louisiana, this guide will serve you as a basic introduction to US payroll in Louisiana.

Paying unemployment insurance

In addition to federal taxes such as Medicare and Social Security taxes, you are responsible for withholding and paying Unemployment Insurance (UI) for your Louisiana employees.

Unemployment Insurance is a national program overseen by the US Department of Labor, aimed at providing temporary financial assistance to individuals who are unemployed through no fault of their own.

As an employer in Louisiana, it is your responsibility to manage and pay for Unemployment Insurance, but this process can be managed efficiently through an online portal provided by the Louisiana Department of Labor.

To find more information and guidance on paying your Unemployment Insurance, the Louisiana Department of Labor offers valuable resources on its website, including a FAQs 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 employee's wages and then remitting it to the state.

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. 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.

Simplify US payroll tax compliance with Deel

While this article provides essential information on Louisiana state payroll and unemployment taxes, payroll compliance and state requirements can be complex and may extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel.

Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. By leveraging Deel's expertise, businesses can optimize their US payroll processes and ensure compliance with state regulations. For more information, speak with a Deel expert today to explore how their services can benefit your organization.

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

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