Louisiana 2025 State Withholding Calculation
- Knowledge Assistant
For the 2025 tax year an Emergency Measure was issued allowing Filers utilizing a filing status of Single Individual or Married-Separate are allowed a standard deduction in the amount of $12,500.00 and Filers utilizing a filing status of Married-Joint, Qualified Surviving Spouse, or Head of Household are allowed a standard deduction in an amount equal to 200% of the dollar amount provided for single individuals. How is this set up to calculate the correct withholding?
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The act that was passed in Louisiana was intended to flatten and simplify the current tax code by removing Dependent credits and Reduction thresholds when determining Per Period withholdings. Previously this calculation was determined from the Calc screen of each Frequency and Marital Status. The new measure utilizes the Taxable Wage minimum to determine the Per Period Tax amount instead of Dependent Credits, and Wage Reduction Thresholds.
To set up the 2025 Annual Louisiana Tax table for the Marital Status of Single:
Navigate to Tax Tables (Payroll>Payroll Setup>Income Tax Setup>Tax Tables)
Select Add, and enter the following information:
Effective Date: 01/01/2025
State Code: LA- Louisiana
Pay Period: Annual
Tax Marital Status: Single
Tax Table Code: 14-Louisiana SIT
Select the Calc skittle and confirm each field is currently set to 0.
Select Tax Table and enter the following information on the First Line of the Tax Table
Column A of the tax table for the Over Amount, enter 0.00.
Column B of this line the But Not Over Amount enter 12,500.00
Column C the +/- Amount enter 0.00
For Column D +/- % enter 0.00
Column E % Over enter 0.00
The Second line of the tax table enter:
Column A of the tax table for the Over Amount, enter 12,5000.
Column B of this line the But Not Over Amount enter 99999999.99
Column C the +/- Amount enter 0.00
For Column D +/- % enter 0.000
Column E % Over enter 3.00
For Column E % over enter 12,5000.00
Select Accept to save the records
When the State Tax withholding is calculated the Personal Exemption, Dependency Credit and Minimum reduction amount will be zeroed out, removing these totals from the calculation. When the Tax withholding is calculated the employee's earnings gross will be subtracted from the Taxable Wage Minimum using the following calculation for filers with a Single Marital Status:
Tax amount= Withheld amount + Withheld percentage * (( Employee Annualized Gross - 12,500)/100)
also viewed as:
Tax amount = 0.00 + 3.00 * ((Employee Annualized Earnings Gross - 12,500)/100)
To Set up the 2025 Annual Louisiana Tax table for the Marital Status' Married, Head of Household and Widow/Widower:
Navigate to Tax Tables (Payroll>Payroll Setup>Income Tax Setup>Tax Tables)
Select Add, and enter the following information:
Effective Date: 2025
State Code: LA- Louisiana
Pay Period: Annual
Tax Marital Status: Married, Head of Household, or Widow/Widower
Tax Table Code: 14-Louisiana SI
Select the Calc skittle and confirm each
confirm each field is currently set to 0.
Select Tax Table and enter the following information on the First Line of the Tax Table
Column A of the tax table for the Over Amount, enter 0.00.
Column B of this line the But Not Over Amount enter 25,000.00
Column C the +/- Amount enter 0.00
For Column D +/- % enter 0.000
Column E % Over enter 0.00
The Second line of the tax table, please enter the following:
For the Column A Over Amount enter 25,000.00
Column B the But Not Over Amount enter 99999999.99
Column C the +/- Amount enter 0.00.
Column D the +/- % enter 3.000
Column E % Over enter 25,000.00
Select Accept.
Tax amount= Withheld amount + Withheld percentage * (( Employee Annualized Gross - 25,000)/100).
also viewed as:
Tax amount = 0.00 + 3.00 * ((Employee Annualized Earnings Gross - 25,000)/100).
If site is not using the Tax Table Frequency of Annualized these amounts will need to be divided by the number of payments before adding to the tax tables