The withholding formulas provided by state of Louisiana in the publication R-1210 Withholding Tax Formula Feb 2018 edition are based on the employee's number of personal exemptions claimed on the Form R-1300 Employee's Withholding Exemption Certificate (L-4).

Single taxpayers can either claim “0” or “1” as their personal exemptions while Married tax payers can claim either “0”, “1”, or “2” exemptions. As stated from their previous publication R-1306 Louisiana Withholding Tables and Formulas Jan 2012 edition, Single taxpayers claiming 2 exemptions on their R-1300 must use the Married taxpayer formula. Thus, if an employee is claiming 2 exemptions, the withholding tax formula(s) to be used would be the ones for the Married tax payers. A series of examples will be provided at a later section of this page to further demonstrate how the withholding tax is being calculated.

With Windward Payroll, the identification of the employee's filing status is the starting point in determining which specific formula to be used using the calculation type STATE TAX (MS). This calculation type with formula: <Max[(<Formula[<EmpMcode>,<SUBTYPE[MARITA]>]>+<EmpAT2>)*<RatioUSA>,0]>, returns the result from the formula within the [MARITA] rate table based on the passed on paramater <EmpMCode>.

From [MARITA], it then points to another formula (<Formula[<EmpPTD1>,<Subtype[PERIOD]>]>) within [PERIOD] that determines the specific withholding formula depending on the number of exemptions claimed by the employee <EmpPTD1>. If an employee is claiming “0” or “1” exemption, it directs the formula(s) within [SANNUA]. While claiming “2” will direct the formula(s) within [MANNUA] regardless of filing status.

Both [SANNUA] and [MANNUA] have formula(s) specified depending on the annual gross income <NetIAnnual> of the employee and is based on the latest publication Withholding Tax Formula Method (12/18).

Figure 1: Rate table [SANNUA]

The following rate tables needs to updated once there is a new tax rate(s) published by Louisiana Department of Revenue.

• [ALLOW] - For the exemption and/or dependent allowance amounts. <Amount> column is for the annual exemption amount while <Formula> column is for the dependent allowance amount.
• [SANNUA] - Formula(s) for the calculation of withholding tax for employees claiming “0” or “1” exemptions
• [MANNUA] - Formula(s) for the calculation of withholding tax for employees claiming “2” exemptions

Below are some sample calculations to further demonstrate of how the state income tax is being calculated. Before that, let us define the variables that are shown in the formulas. They are:

• W = withholding tax due for the period
• S = the salary for the period
• N = the number of pay periods in a year
• A = is the effect of personal exemptions and dependency credits equal to or less than $12,500
• B = is the effect of personal exemptions and dependency credits in excess of $12,500

Example A:
An employee claiming no exemptions is paid $7000 monthly.

• Step 1: Determine the number of exemptions claimed. Since the employee is claiming no exemption, the formula to be used will be the formula(s) within the [SANNUA] table.
• Step 2: Determine the Annual Gross Income. In this case, the annual gross income of the employee is $7000 x 12 months = $84,000.
• Step 3: Determine which formula to use. From the published publication, the formula to be used is:

• Step 4: Calculate withholding based on the formula above.

Example B:
An employee claiming “1” personal exemption with 2 dependents is paid $800 weekly.

• Step 1: Determine the number of exemptions claimed. Since the employee is claiming “1” exemption, the formula to be used will be the formula(s) within the [SANNUA] table.
• Step 2: Determine the Annual Gross Income. In this case, the annual gross income of the employee is $800 x 52 weeks = $41,600.
• Step 3: Determine which formula to use. From the published publication, the formula to be used is:

• Step 4: Calculate withholding based on the formula above.

Example C:
An employee claiming “2” exemptions with no dependents is paid $800 weekly.

• Step 1: Determine the number of exemptions claimed. Since the employee is claiming “2” exemption, the formula to be used will be the formula(s) within the [MANNUA] table.
• Step 2: Determine the Annual Gross Income. In this case, the annual gross income of the employee is $800 x 52 weeks = $41,600.
• Step 3: Determine which formula to use. From the published publication, the formula to be used is:

• Step 4: Calculate withholding based on the formula above.

• Withholding Tax Formula Method (12/18)
• Louisiana Withholding Tables and Formulas (1/12)
• Employee Withholding Certificate (L-4)