Louisiana

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Louisiana

The purpose of this email is to help you setup TKT Payroll for proper Louisiana tax withholding. An Annual Tax Credit amount must be calculated for each employee and entered in the last field in the employee's record in TKT Payroll. In addition, you should always type the number 1 in the employee record field titled "State Tax Exemptions or Decimal Number for Percent of Federal Tax ->" for proper calculation of the Annual Tax Credit by the software.

First the Annual Exemption Allowance amount must be determined by applying the following guidelines. The Annual Exemption Allowance amount is determined only for the calculation of the Annual Tax Credit amount.

Claiming Status As
Zero
Single
Married
Each additional dependent exemption

Annual Exemption Allowance
$ 0
$4500
$9000
$1000 each

Example:
The Annual Exemption Allowance for a married employee claiming himself, his spouse, and two children would be calculated a follows:

Married
2 dependents @ $1000 ea.
Total Annual Exemption Allow.

9000
2000
11000

= $
= $
= $

Use the Annual Exemption Allowance amount above to determine the Annual Tax Credit amount as follows:

Using the criteria found for Louisiana on the website referenced on the TKT Payroll Louisiana tax table, the Annual Tax Credit for Married is 2.1% times any Annual Exemption Allowance amount up to $25000. Therefore, the Annual Tax Credit amount to be entered in the last field in the employee's record for the example above is $231.00 ( $11000 X .021 = $231).

Access the Louisiana Tax Table by clicking "Utilities" on the TKT Payroll Main Menu bar, then highlighting "Withholding Rates" and clicking "State Annual Rates". Next, click the down arrow to select the state and click the “Go” button.