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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Adopted Rule – Income Tax Withholding Tables

UPDATED BELOW

Under the authority of R.S. 47:32, R.S. 47:112, R.S. 47:295, and R.S. 47:1511 and in accordance with the provisions of the Administrative Procedure Act, R.S. 49:950 et seq., the Department of Revenue, Policy Services Division, amends LAC 61:I.1501 relative to individual income tax withholding tables based on the income tax rates as provided by Act 396 of the 2008 Regular Session of the Louisiana Legislature. Act 396 amended R.S. 47:32 to reduce state income tax rates in the two highest income brackets for tax years beginning on or after January 1, 2009. Act 396 provided that the revised withholding tables will not become effective until after July 1, 2009.

Read LAC 61:I.1501: Income Tax Withholding Tables.

UPDATE

Correction made to minor errors in withholding formula.

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