Louisiana releases guidance on updated withholding tables

The Louisiana Department of Revenue has issued a bulletin informing corporate income tax payers that it has issued an emergency rule that provides for the withholding tables that employers use to determine the appropriate amount of withholding tax to deduct from an employee’s wages. The updated withholding tables allow employers to deduct and withhold the correct amount of tax from their employees and avoid unnecessary penalties for employers and unexpected income tax liabilities for employees. As per the update, employers are required to maintain Form R-1300, Employee Withholding Exemption Certification (L-4), in order to withhold the correct amount of withholding tax from an employee’s wages. Employees are not required to update Form R-1300 and do not need to update their exemptions and dependents due to the changes in the withholding tables. However, employees must review their additional withholding amounts (Line 8 of Form R-1300; Version 4/11) to ensure the appropriate amount of income tax is withheld. Additionally, the update has resulted in increased standard federal deductions and decreased federal tax rates beginning with the 2018 tax year. Employers must begin using the updated 2018 withholding tables as soon as possible but no later than February 16, 2018. (Louisiana Department of Revenue, Revenue Information Bulletin No. 18-009, February 19, 2018.)

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