Setting up or updating Louisiana employee withholdings

Show expandable text

Warning

Product support for the Creative Solutions Accounting platform ended on September 30, 2020.

Help & How-To Center content for the Creative Solutions Accounting platform may be outdated and is used at your own risk.

As of 2003, the state of Louisiana calculates employee state withholdings differently than in previous years. In order for CSA to accurately calculate state withholdings, you will need to handle employee withholding setup using the information and procedure given below. Louisiana withholdings consider only exemptions and tax credits (dependents).

The following areas of the State Withholding Properties dialog are affected by the 2003 change:

  • Marital status field. This field is not used to specify actual marital status, but rather to specify the number of exemptions that an employee is claiming. Use the following information to determine which marital status is applicable for a particular employee.
    • If the employee is claiming 0 exemptions, select Other in the Marital status field.
    • If the employee is claiming 1 exemption, select Single in the Marital status field.
    • If the employee is claiming 2 exemptions, select Married in the Marital status field.

    As an example, for a married employee claiming only 1 exemption, choose Single in the Marital status field in the State Withholding Item Properties dialog (even though the employee is, in fact, married).

  • Withholding table field. This field contains two options. If an employee is claiming 0 or 1 exemptions, select the 0/1 Exemptions option. If the employee is claiming 2 exemptions, select the 2 or more Exemptions option.
  • Allowances group box. All exemptions, personal or spouse, should now be entered into the Personal field. For example, if an employee is claiming 2 exemptions, enter 2 in the Personal field. All dependents must be entered into the Tax credit field. For example, if an employee is claiming 2 exemptions and 1 dependent, enter 2 in the Personal field and 1 in the Tax credit field.

Top of page

Procedure

To set up or update employees for the new Louisiana state withholdings calculations, follow these steps and refer to the appropriate examples:

  1. Choose Setup > Employees and click the Tax Withholdings and Deductions tab.
  2. Click the Item Properties button /_images/acct_pr/csa/ebx_-1208420037.gif for the State W/H item.
  3. In the General tab, make the appropriate changes in the Marital status field, the Withholding table field, and the Allowances group box based on the following examples.
    • If the employee is single and claiming 0 exemptions and 0 dependents:

      Note: We must enter Other in the Marital status field even though the employee is single, because he or she is claiming 0 exemptions.

      /_images/acct_pr/csa/1_single_zero_zero.gif

    • If the employee is single and claiming 1 exemption and 0 dependents:

      /_images/acct_pr/csa/2_single_one_zero.gif

    • If the employee is single and claiming 1 exemption and 1 dependent:

      Note: Dependents are entered in the Tax credit field only.

      /_images/acct_pr/csa/3_single_one_one.gif

    • If the employee is married but only claiming 1 exemption and 0 dependents:

      Note: You must enter Single in the Marital status field even though the employee is married, because he or she is claiming only 1 exemption.

      /_images/acct_pr/csa/4_married_one_zero.gif

    • If the employee is married and claiming 2 exemptions and 0 dependents:

      Note: Both exemptions, personal and spouse, are to be listed in the Personal field.

      /_images/acct_pr/csa/5_married_two_zero.gif

    • If the employee is married and claiming 2 exemptions and 2 dependents:

      Note: Both exemptions, personal and spouse, are to be listed in the Personal field. Dependents are entered in the Tax credit field only.

      /_images/acct_pr/csa/6_married_two_two.gif

Top of page

Was this article helpful?

Thank you for the feedback!