Louisiana state withholding taxes changed effective January 1, 2003. Instead of a standard deduction amount and Exemption Total, there is now a calculated Tax Credit Amount.
You will have to calculate the new Tax Credit amount for each Louisiana employee set up in CheckMark Payroll and manually enter the amount on the Employee Setup window.
CheckMark offers a calculator on our web site that will calculate the Tax Credit amount for each employee. To make the change for your employees in CheckMark Payroll, follow these instructions:
1. Go online to CheckMark’s Web site, http://www.checkmark.com/support/lacredit.php
2. Select the correct table for the employee, either LA-1 or LA-2.
3. Enter the number of Exemptions for the employee in the Step 2 edit box.
4. Enter the number of Dependency Credits for the employee in the Step 3 edit box.
5. Click the Calculate Credit button.
An amount appears in the Tax Credit Total edit box.
6. In CheckMark Payroll, click Employees in the Command Center, then select the Taxes tab.
7. Highlight the Louisiana employee in the list.
8. In the State Taxes section, make sure LA is selected in the SUTA State drop-down list and select the correct Louisiana table from the State Tax Table drop-down list.
9. If necessary, delete any amount in the Exemption Total edit box.
10. Enter the amount calculated on the web site in the Tax Credit Total edit box, then click Save.
11. Repeat the above steps for each Louisiana employee.
If you have questions about this change, please contact support at 970-225-0387.