Employer of Record for Louisiana

Do I Need an EIN or Payroll Tax Number to Employ in Louisiana?

Yes. Employers need a Federal Employer Identification Number (EIN) from the IRS for payroll and tax reporting. They must also register with the Louisiana Department of Revenue to obtain a state withholding tax account and with the Louisiana Workforce Commission for unemployment insurance contributions.

Working Hours in Louisiana

Louisiana follows the FLSA standard 40-hour workweek for full-time employees. There are no state-specific restrictions on maximum weekly working hours, but employers must comply with federal wage and hour laws, including overtime.

What Is Considered Full-Time Employment in Louisiana?

Louisiana law does not define full-time employment. Under the Affordable Care Act (ACA), employees working 30 or more hours per week are considered full-time for health insurance purposes. Employers often use 40 hours per week as the internal benchmark for full-time status and benefits eligibility.

Probation Period in Louisiana

Louisiana does not mandate probationary periods. Many employers use a 60–90 day probation period to assess fit before granting full benefits. Probation terms should be clearly defined in employment agreements or handbooks.

Louisiana’s labor laws are shaped primarily by federal requirements but also include state-specific provisions around taxes, termination, and discrimination protections. Employers must pay close attention to these requirements to avoid compliance issues.

Minimum Wage in Louisiana

As of 2025, Louisiana does not have a state minimum wage law. Employers must follow the federal minimum wage of:

• $7.25 per hour for most employees.
• $2.13 per hour for tipped employees, provided tips bring total hourly earnings to at least $7.25.
• $4.25 per hour training wage for employees under 20 during their first 90 days of employment.

Louisiana Anti-Discrimination Laws

Employees in Louisiana are protected against workplace discrimination on the basis of:

• Race, color, or national origin
• Religion
• Sex, including pregnancy and sexual orientation
• Age (40 and older)
• Disability (mental or physical)
• Genetic information

These protections are enforced by both the EEOC and the Louisiana Commission on Human Rights. Employers must comply with federal and state requirements when hiring, promoting, or terminating employees.

Overtime in Louisiana

In Louisiana, non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. The state follows federal overtime regulations as outlined in the Fair Labor Standards Act (FLSA).

Exemptions include employees in executive, administrative, and professional roles, as well as outside sales employees who meet specific criteria.

Payroll tax compliance in Louisiana requires employers to manage both federal and state obligations. Employers must register with the Louisiana Department of Revenue and the Workforce Commission to ensure compliance.

Payroll Cycle in Louisiana

Louisiana does not mandate pay frequency, but most employers pay biweekly or semi-monthly. Wages must be paid consistently and in full on designated payday schedules.

Types of Payroll Taxes in Louisiana

Louisiana employers must manage both state and federal payroll taxes. This includes state income tax withholding, unemployment contributions, and federal tax obligations.

Here’s a quick look at the key payroll taxes you’ll need to manage:

Louisiana State Income Tax

• Withheld from employee wages based on Louisiana’s progressive income tax rates (1.85%–4.25% in 2025).
• Employers must use state withholding tables to determine deductions.

Louisiana Unemployment Insurance (SUTA)

• Employers contribute on the first $8,500 of employee wages in 2025.
• Tax rates range from 0.09% to 6.2%, depending on claims history.
• Funds the state unemployment program through the Louisiana Workforce Commission.

Federal Income Tax

• Withheld from employee wages per IRS tables and the employee’s Form W-4.
• Varies depending on income, filing status, and allowances.

Social Security Tax

• Withheld at 6.2% of wages up to $176,100 in 2025.
• Employers must match the 6.2% contribution.

Medicare Tax

• Withheld at 1.45% of all wages, with no cap.
• An extra 0.9% surtax applies to employee wages above $200,000.

Federal Unemployment Tax (FUTA)

• Employers pay 0.6% on the first $7,000 of wages, after state credits.
• Reported annually on IRS Form 940.

How to Comply with Louisiana Payroll Taxes

Complying with payroll tax laws in Louisiana comes down to accuracy and timing. Employers must register, withhold, file, and remit taxes correctly to both state and federal agencies. Here’s what compliance looks like in practice:

• Register with State Agencies: Set up accounts with the Louisiana Department of Revenue for withholding and the Louisiana Workforce Commission (LWC) for unemployment insurance before processing payroll.
• Withhold Louisiana State Income Tax: Use current state withholding tables to calculate employee deductions. Employers must file and remit state income tax on a quarterly basis.
• Pay Unemployment Insurance (SUTA): Contribute based on your assigned rate to the Louisiana Workforce Commission, applied to the first $8,500 of employee wages in 2025.
• Remit Federal Taxes: Withhold federal income tax, Social Security (6.2%), and Medicare (1.45%) from wages, match your FICA contributions, and report using IRS From 941 each quarter. File Form 940 annually for FUTA.
• Deposit on Schedule: Louisiana assigns deposit frequencies based on employer liability, while federal schedules follow IRS lookback rules (monthly or semi-weekly). Timely deposits are essential to avoid penalties.
• Maintain Records: Keep payroll, tax filings, and employee wage records for at least four years to remain compliant with federal and state audit requirements.
• Stay Updated: Monitor annual changes to tax rates, unemployment wage bases, and exemption thresholds through the Louisiana Department of Revenue, LWC, and IRS.

By keeping payroll accurate and on time, or by partnering with Playroll to automate compliance, you can reduce errors, avoid penalties, and ensure smooth operations in Louisiana.

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Louisiana. Understanding the tax obligations for both employers and employees is crucial when operating in Louisiana’s business landscape.

Employer Tax Contributions

Employers in Louisiana are responsible for several employment taxes, including federal taxes (Social Security and Medicare), state unemployment insurance, and federal unemployment taxes.

Employer payroll contributions are generally estimated at an additional 7.65% on top of the employee salary in Louisiana.

Employee Tax Contributions

Employee tax contributions are generally estimated at 7.65% of employee salary in Louisiana.

Tax Due Dates in Louisiana

• Quarterly Filings: April 30, July 31, October 31, January 31.
• Annual FUTA filing (Form 940): January 31.
• State Filings: Louisiana Department of Revenue quarterly and annual reconciliations.

Louisiana does not mandate that employers provide benefits such as health insurance, paid vacation, or retirement plans. However, offering competitive employee benefits can help attract and retain talent.

Employee Benefits for Louisiana

Competitive benefits are essential for attracting and retaining top talent in Louisiana. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Louisiana packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA

Are Employers Required to Provide Health Insurance in Louisiana?

Yes, employers with 50 or more full-time equivalent employees must provide health insurance under the ACA. Smaller employers are not required but often offer it to remain competitive.

Are Employers Required to Offer 401(k) in Louisiana?

No. Louisiana does not mandate retirement savings plans, but offering a 401(k) can improve retention and hiring outcomes.

Paid Time Off (PTO)

Louisiana law does not require employers to provide PTO. However, many employers combine vacation, sick leave, and personal days into a single PTO policy to stay competitive.

Maternity Leave

Louisiana does not mandate paid maternity leave, but eligible employees may use FMLA leave for pregnancy, childbirth, and recovery. This provides up to 12 weeks of unpaid, job-protected leave. Offering additional paid maternity leave benefits is a great way to attract and support existing talent.

Paternity Leave

Like maternity leave, Louisiana does not require paid paternity leave. Eligible employees may take up to 12 weeks of unpaid FMLA leave for the birth or adoption of a child.

Paid Sick Leave

Louisiana does not mandate paid sick leave. Employers may voluntarily offer sick days or incorporate them into a broader PTO policy. If offered, the policy must be applied consistently and detailed in the employee handbook.

Military Leave

Employees who serve in the military are protected under USERRA and are entitled to unpaid leave for training, service, or deployment. Employers must reinstate returning employees to their previous position or a comparable role with the same benefits and pay.

Jury Duty

Employers must provide employees with unpaid leave to serve on a jury. While payment is not required, retaliation or disciplinary action against employees for fulfilling jury service is strictly prohibited.

Parental Leave

Louisiana does not provide a separate parental leave program beyond FMLA. Eligible employees may take up to 12 weeks of unpaid, job-protected leave for the birth, adoption, or fostering of a child.

Ending employment in Louisiana requires compliance with state and federal laws, even though the state follows at-will employment. Employers must ensure that final pay obligations, benefit continuation, and any contractual terms are honored to avoid legal or financial risk.

Termination Process in Louisiana

Louisiana is an at-will state, but employers must avoid discriminatory or retaliatory terminations.

• Final Pay: Wages must be paid by the next payday or within 15 days, whichever is sooner.
• Unused Vacation: Must be paid out if company policy or contract provides for it.
• Health Coverage: COBRA continuation applies for employers with 20+ employees.

Notice Period in Louisiana

Louisiana law does not require employers to provide advance notice before terminating an employee. Since the state follows at-will employment, either party may end the relationship at any time. If a notice period is outlined in an employment contract or policy, however, the employer must honor those terms.

Severance in Louisiana

Severance pay is not required under Louisiana law. Employers may choose to provide it as part of a company policy or contractual agreement, often to support employees during transitions or reduce legal risk.