Louisiana State Tax Routine (LATX)

The Louisiana (LATX) State Tax Special Routine processing utilizes the following steps:

Line 1

Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).

Line 2

Determine the Standard Deduction Amount.

Line 3

Determine the Taxable Amount by subtracting Line 2 from Line 1.

Line 4

Using the Marginal Tax Rates (DEDX) entries for the Louisiana State Tax deduction, compute tax on the Taxable Amount (Line 3).

Line 5

Divide the amount on Line 4 by the number of payroll periods in a year to determine the employee’s Louisiana Withholding Tax for the pay period.

Data Setup Considerations

Sites need to ensure that they have implemented the following Business Process/Data Setup changes at their site prior to Louisiana State Tax Routine.

  1. The Tax Parameters (TAXP) setup for Louisiana.

  1. Standard Deduction Amount is the Minimum Standard Deduction Amount.