Louisiana State Tax

The State of Louisiana differentiates between the exemptions an employee claims for him or herself (and spouse) and the exemptions an employee claims for dependents. An employee can use Block A and Block B of the L-4 worksheet to determine how many exemptions to claim on the L-4 form.

  • Block A. An employee can select from three exemptions (0-No Exemptions, 1-Yourself, 2-Yourself & Spouse).
  • Block B. An employee can enter the total number of dependents, excluding the employee and spouse.

Block A

Select one of the three exemptions:

  • Enter “0” if you claim neither yourself nor your spouse. You may enter “0” if you are married and have a working spouse or more than one job to avoid having too little tax withheld.
  • Enter “1” if you claim yourself, provided you do not claim this exemption in connection with other employment or if your spouse has not claimed your exemption. Enter “1” to claim one personal exemption or if you will file as head of household.
  • Enter “2” if you claim yourself and your spouse.

Block B

  • Enter the number of dependents, not including yourself and your spouse, whom you will claim on your tax return. If no dependents are claimed, enter “0.”

  • Sage 100 Contractor determines the Louisiana table to use for the calculation by the number you enter in the Louisiana row under the Add Allow (additional allowances) column. The following table shows the criteria for entering Louisiana state tax on the 5-2-1 Employees Calculations tab, in the Add Allow column:

    Criteria used to determine exemptions

    Add Allow Column

    Table Used

    0 or 1

    Always uses the Single or Married claiming 0 or 1 personal exemptions table.

    2

    Always uses the Married with 2 personal exemptions table.

     

    Although Sage 100 Contractor does not use marital status when calculating Louisiana state withholding taxes, the program still requires that you enter a marital status for each employee’s state tax calculation. Use the following table to determine marital status.

Marital statuses

Status

Description

1-Single

Single Person

2-Married

Married

3-Head of Household

Head of Household

4-Married/Separate

Married Filing Separate

5-Married/Joint

Married Joint

 

To set up payroll deductions on an employee for Louisiana State Tax:

  1. Open 5-2-1 Employees.
  2. Using the data control, select the employee.
  3. Click the Calculations tab.
  4. In the Marital cell of the Louisiana Income Tax row, enter a marital status number from the table above (1 through 5).
  5. In the Std Allow cell of the Louisiana Income Tax row, type the number contained on line 7 of the L-4 Employee’s Withholding Exemption Certificate.
  6. Refer to the first table in this topic, and in the Add Allow cell of the Louisiana Income Tax row, type the number contained on line 6 of the L-4 Employee’s Withholding Exemption Certificate.
  7. Click File > Save.