CORRECTION – Income Tax Withholding Formulas

 A CORRECTION has been issued for minor errors in the Louisiana income tax withholding FORMULAS that take effect on July 1, 2009.

Please refer to Revenue Information Bulletin (RIB) 09-012:

 Subsection D of the regulation, which provides the income tax withholding formulas, contained the following errors: if any of the variables are negative, the negative variable should be shown as zero. The errors in the formulas do not affect the withholding tables.

    1. The parentheses are unbalanced in the formula for “B” for both single and married taxpayers.
    2. In the formula for a single taxpayer—the 25,000 should be 12,500 as follows B=.016 ((((X * 4500) + (Y * 1000)) – 12,500) ÷ N).

In addition to these corrections, the amendment to LAC 61:I.1501 will include the instruction that if any of the variables are negative, the negative variable should be shown as zero. The errors in the formulas do not affect the withholding tables.

Additional resources: Notice of Intent – Income Tax Withholding Tables (LAC 61:I.1501)

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