Louisiana Payroll & Paycheck Tax Calculator
Running payroll in the Pelican State shouldn't feel like wading through a bayou. From New Orleans to Shreveport, our Louisiana Payroll Tax Calculator makes calculating employee withholdings as smooth as jazz on Bourbon Street. Navigate state income tax, parish taxes, and federal requirements with confidence—all in one easy-to-use tool.
Louisiana Payroll Tax Steps
Louisiana’s progressive tax system combined with various parish and municipal taxes can make payroll feel as complex as a good gumbo recipe. Our calculator helps you navigate Louisiana’s unique payroll landscape without getting lost in the mix, ensuring accurate calculations whether you’re in the French Quarter or up in Cajun Country. Get precise withholdings faster than you can say “laissez les bons temps rouler.”
Here are some key steps you’ll have to take to make smarter payroll decisions.
Step #1: Register with Louisiana Department of Revenue and LWC
To hire employees in Louisiana, you'll need to register with the Louisiana Department of Revenue (LDR) for withholding taxes and the Louisiana Workforce Commission (LWC) for unemployment insurance. Louisiana's online filing system, Louisiana File Online (LFO), makes registration as easy as catching beads at Mardi Gras. Some parishes require separate registration for local taxes.
New employers pay unemployment tax rates that vary by industry, typically starting at 2.67% on the first $8,500 of each employee's wages.
Step #2: Handle Louisiana's Multi-Layer Tax Forms
The Pelican State's paperwork reflects its unique parish system:
- Federal W-4 and Louisiana L-4 forms for withholding
- Federal forms from the IRS: • Form 941 (Quarterly federal tax return) • Form 940 (Federal Unemployment Tax, FUTA) • W-2 and 1099 (Year-end wage reporting)
- New Hire Reports: Submit within 20 days to Louisiana New Hire Registry
- Workers' Compensation: Required for most employers with employees
- Form L-1: Monthly or quarterly withholding return
- Form L-3: Annual reconciliation
- Parish/municipal tax forms where applicable
Several Louisiana parishes and cities impose their own taxes, requiring additional registrations and filings.
Step #3: Understand Louisiana's Minimum Wage and Overtime Laws
Louisiana doesn't have its own minimum wage law, so the federal minimum of $7.25 per hour applies. Tipped employees can be paid $2.13 per hour, with employers making up any difference if tips don't reach minimum wage. Small businesses and certain industries may have federal exemptions.
For overtime, Louisiana follows federal FLSA rules: 1.5x regular pay after 40 hours per week. No daily overtime requirements exist, and weekends or holidays don't automatically trigger overtime unless exceeding 40 weekly hours.
Step #4: Follow Louisiana's Pay Period Requirements
Louisiana doesn't mandate specific pay frequencies for most private employers, allowing flexibility in choosing schedules. Most employers opt for weekly, bi-weekly, or semi-monthly pay periods. Public sector employees must be paid at least twice monthly.
When employment ends, Louisiana requires payment on or before the next regular payday following termination or resignation. Employers can mail final checks if that's the normal practice. Special rules apply to oil field workers and certain other industries.
Louisiana doesn't require paid sick leave, vacation, or holiday pay. However, if promised in company policies, these benefits become enforceable under contract law.
Step #5: Use our Simple Louisiana Payroll Calculator
Louisiana's tax structure includes state and local components:
- Federal income tax withholding
- Louisiana state income tax (1.85% to 4.25% based on income)
- Parish/municipal taxes (varies by location)
- FICA taxes (Social Security and Medicare)
- Unemployment taxes (FUTA and state UI)
Our calculator instantly handles all applicable taxes based on work location and residence, providing accurate calculations for gross pay, deductions, and net pay.
Step #6: Submit Taxes and File Louisiana Payroll Reports
Louisiana employers maintain various filing schedules:
- Monthly or quarterly L-1 returns for state withholding
- Quarterly wage and tax reports for unemployment
- Annual L-3 reconciliation by February 28
- Parish/municipal tax filings (frequency varies)
- Federal tax deposits and returns
Deposit frequency depends on withholding amounts—most small employers file monthly through LFO. After approximately two years, unemployment rates adjust based on experience, ranging from 0.1% to 6.2%.
Fingercheck and any related entities do not offer tax, accounting, or legal advice. This content is designed for informational purposes only and should not be considered a source of tax, legal, or accounting advice. It is recommended that you consult your tax, legal, and accounting advisors before undertaking any related activities or transactions.