Louisiana paycheck laws and regulations
Before furnishing pay stubs to employees and contractors in Louisiana, it's crucial to understand the pertinent laws and regulations that govern employers.
This guide elucidates the applicable statutes and regulations for employers in Louisiana concerning payroll operations and the provision of pay stubs.
Pay stub regulations in Louisiana
1. Are pay stubs required by law in Louisiana?
It's not mandatory for employers in Louisiana to provide employees with pay stubs. However, federal law requires all employers covered by the Fair Labor Standards Act (FLSA) to maintain a record of employee payments for at least 3 years.
2. How often do you need a pay stub in Louisiana?
Although there's no law for employers to provide pay stubs to their employees and contractors, it is recommended that you issue pay stubs every time you pay an employee.
3. What information can be included on a pay stub in Louisiana?
Since there's no law for pay stubs, you can include the information listed below:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- Pay period
- Gross earnings before deductions
- Taxes withheld
- Employee contributions
- Deductions
- Net pay
4. Does Louisiana have a state income tax?
Yes. The State of Louisiana requires employers to withhold income taxes from employee paychecks.
5. Are there any other taxes applicable to Louisiana?
No. There are no local taxes in addition to federal and state income taxes applicable to employees in the state of Louisiana.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee's total allowances
- Employee's exemption status from state withholding
- Filing status and additional state withholding amount
- Employee's total dependents
Louisiana wage and hour laws
Louisiana employers are required to follow wage and hour regulations, ensuring that non-exempt workers receive at least the minimum wage, are fairly compensated for any overtime hours worked, are provided with adequate meal and rest breaks, and receive the rightful accrual of paid time-off benefits.
The regulations encompass various aspects of employment law matters within Louisiana.
Louisiana Minimum wage
Louisiana doesn't have its own minimum wage law. Instead, employers covered by the Fair Labor Standards Act (FLSA) must adhere to the federal minimum wage requirement, which currently stands at $7.25 per hour.
Overtime pay
Louisiana state employees fall under the purview of the U.S. Fair Labor Standards Act (FLSA) concerning overtime compensation. Compliant with federal regulations, Civil Service mandates agencies to adhere to the FLSA. Typically, non-exempt employees are entitled to overtime compensation, usually calculated at one-and-a-half times their regular rate of pay, for hours worked beyond 40 in a workweek. Overtime is computed for non-exempt employees who exceed the FLSA-defined work-period, commonly set at 40 hours per week or an equivalent averaged over a multi-week schedule.
Louisiana meal break and rest break
Employers in Louisiana are not legally obligated to provide meal breaks and rest breaks for their employees. However, Louisiana follows federal law regarding breaks for workers aged 18 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be compensated as long as the employee is completely relieved of all duties.
Paid time off and leave
Louisiana mandates employers to offer employees a range of leave benefits, including both obligatory and optional types.
| Required Leave | Non-Required leave | |
|---|---|---|
| Paid | Unpaid | Paid or Unpaid |
| Jury leave - The employer must compensate the employee for up to 1 day's wages. Subsequently, if further compensation is necessary, the court provides the employee with $25 per day. | Employers might have to grant unpaid leave to an employee as dictated by the Family and Medical Leave Act or other federal statutes | Vacation leave |
| Military leave | Bereavement leave | |
| Holiday leave | ||
| Sick leave | ||
| Voting leave | ||
Louisiana State payroll taxes 2024
In Louisiana Payroll taxes are typically categorized as follows:
- Louisiana Personal Income Tax(PIT)
- Louisiana State Unemployment Insurance (UI) Tax
Louisiana Personal Income Tax(PIT)
In Louisiana, state personal income tax rates differ based on an individual's filing status and income level, which encompass Single, Married Filing Separately, Married Filing Jointly, and Head of Household
In 2024, individuals filing as single, married filing separately, or head of household in Louisiana will have varying state personal income tax rates.
| Taxable income | Tax |
|---|---|
| First $12,500 | 1.85 percent |
| Next $37,500 | 3.50 percent |
| Over $50,000 | 4.25 percent |
For 2024 in Louisiana, married couples filing jointly or qualified surviving spouses will face specific state personal income tax rates.
| Taxable income | Tax |
|---|---|
| First $25,000 | 1.85 percent |
| Next $75,000 | 3.50 percent |
| Over $100,000 | 4.25 percent |
Louisiana State Unemployment Insurance (UI) Tax
Louisiana established the State Unemployment Tax Act (SUTA) to support individuals facing unemployment by providing them with unemployment benefits. This legislation enables the state to collect the essential funds required for administering unemployment insurance benefits to eligible individuals during periods of job loss.
In 2024, SUTA tax rates in Louisiana span from 0.09% to 6.2%, with a consistent taxable wage base of $7,700.
Louisiana payroll tax filing
- Report of New hire Employees
- Report of Independent Contractors
- Louisiana personal income tax filing(Form IT-540B,Form IT-540)
- Louisiana quarterly tax and wage report
Report of New hire Employees
All employers are mandated to provide essential information regarding newly hired or re-hired personnel to a specified state agency within 20 days of the employee's start date.
Report of Independent Contractors
Employers in Louisiana are not required to report their newly hired independent contractors.
How to report employees new hire in Louisiana?
The Louisiana Directory of New Hires provides various convenient options for employers to report new hires, including: Online reporting, Printed list, New hire reporting form, W-4 form, Payroll service.
| Online | Fax | |
|---|---|---|
| Employees New Hire Report | Address Information: P.O. Box 45247 Austin, TX 78714 Public Phone: 800-222-2857 | Fax 1: 888-223-1462 |
Louisiana personal income tax filing(Form IT-540B,Form IT-540)
Starting January 29, 2024, individuals can submit their 2023 state individual income tax returns to the Louisiana Department of Revenue (LDR). The deadline for filing these returns is May 15, 2024. Taxpayers have the option to electronically file their state income tax returns using Louisiana File Online, the state's free web portal for individual tax filers, beginning January 29. The available forms for filing individual income tax are:
- Louisiana Nonresident and part-year resident Income Tax Return: Form IT-540B
- Louisiana Resident Income Tax Return: Form IT-540
Louisiana quarterly tax and wage report
Employers are required to remit taxes by the final day of the month following the conclusion of each quarter, except for annual domestic filers, whose taxes are due by January 31. Failure to comply with these deadlines will result in penalties and interest being assessed on late payments.
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
The Louisiana Workforce Commission (LWC) has the authority to impose penalties for the failure to submit quarterly wage and tax reports accurately and in the approved format. Penalties commence at 5 percent of the total amount due for the quarter or $25, whichever is higher, for periods of 30 days or less. An additional penalty of the same amount is levied for each subsequent 30-day period of non-compliance. The maximum penalty is capped at 25 percent of the amount due for the quarter or $125, whichever is greater.
Have all the information handy?
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Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
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Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 8, 2024.