Payroll Post Notes: Louisiana Tax Change

If you have employees subject to Louisiana state tax, complete your June payroll and then follow these steps before calculating payroll for July:

1. Download and install version 7.78 and patch 9.
2. Create a new state tax for Louisiana with an effective date of 07/01/09:
   1. In Configuration, Taxes, select State taxes from the drop-down list and click New Tax.
   2. In the Add new state tax setting for drop-down list, select Louisiana and click OK.
   3. Change the effective date to 07/01/09.
   4. Select State, Restore Defaults from the menu bar.
   5. Select 2009 from the Restore the drop-down list and click OK.
   6. Enter the remaining required information for each tax.
   7. Click GL Distribution to enter withholding, liability, and expense accounts distributions.
   8. Click Save and Close.
3. Change the withholding status of all employees with Zero withholding to either Single or Married withholding:
   1. Create a query of records with a Withholding status of Zero.
   2. On the Results tab, open the first record.
   3. Change the Withholding status and click the single right arrow on the action bar to move to the next record.
   
   Note: Although Louisiana no longer offers a Zero withholding status, we have left the status available so you can easily identify employees that need to be updated.

For more information about the Louisiana tax changes, refer to the Louisiana Department of Revenue website.