Louisiana Tax

For Louisiana residents, you specify the employee's exemptions.

Deltek Modification Date - 3/16/18

Enter the following field information for residents of Louisiana on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Louisiana’s tax calculations do not use the Status field.
Exemptions	Enter the number of personal exemptions claimed by the employee on the Louisiana Employee’s Withholding Exemption Certificate, Form L-4, L-4A, or L-4E. Use the following guidelines to complete this field. If the employee claimed: No personal exemption, enter 0 (zero). A personal exemption of $4,500, enter 1. A personal exemption of $9,000 for self and spouse, enter 2. If the employee did not submit Form L-4, L-4A, or L-4E, enter 0 (zero) for the number of exemptions.
Other Exemptions	Enter the number of dependents claimed by the employee on L-4, L-4A, or L-4E.

Automatically Calculated Variables

DPS automatically computes the following variables.

Allowance

The Allowance is based on the number of exemptions entered in the first Exemptions field.

Number of Exemptions	Allowance
0 or 1	$4,500
2	$9,000

Additional Allowance

Additional Allowances are based on the number of dependents claimed by the employee in the Other Exemptions field. It is determined by multiplying the number of Other Exemptions by $1,000.

How DPS Calculates Tax

To calculate an employee's Louisiana State tax, DPS does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee’s 401(k) and 125 Cafeteria plan contributions from the employee’s gross wages to obtain the employee’s taxable wages.
3. Establishes a lower wage bracket amount and a higher wage bracket amount. If the employee is claiming an exemption of 0 or 1, the lower wage bracket is $12,500 and the higher wage bracket is $25,000. If the employee is claiming an exemption of 2, the lower wage bracket is $25,000 and the higher wage bracket is $50,000.
4. Multiplies the employee’s taxable wages by .021 to obtain amount A. If the employee’s taxable wages are greater than the lower wage bracket, DPS subtracts the lower wage bracket amount from the employee’s taxable wages and multiplies the result by .0135 to obtain amount B. If the employee’s taxable wages are greater than the higher wage bracket amount, DPS subtracts the higher wage bracket amount from the employee’s taxable wages and multiplies the result by .0135 to obtain amount C.
5. Adds the allowance amount to the additional allowance amount and multiplies the result by .021 to obtain amount D.
6. If the result of adding the allowance amount to the additional allowance amount is greater than the lower wage bracket amount, DPS subtracts the lower wage bracket amount from the sum of the allowance amount and additional allowance amount and multiplies the result by .0135 to obtain amount E.
7. Adds amounts A, B, and C together and subtracts amounts D and E to obtain the annualized tax withholding. If the result is greater than 0, DPS divides the result by the number of pay periods to determine the amount to be withheld for the pay period.