The Louisiana Department of Revenue released an emergency rule, revising the state income tax withholding tables and formula for the first time since July 2009.

According to the rule's preamble, employers should begin using the 2018 withholding tables as soon as possible, but no later than February 16, 2018. (Emergency rule LAC 61:I.1501, released by the Louisiana Department of Revenue on February 14, 2018.)

The revised withholding formula is available here.

According to the rule's preamble, the withholding tables were amended as a result of the passage of the federal Tax Cuts and Jobs Act for 2018 and succeeding tax years. The emergency rule is necessary to prevent undue delay in notifying employers of the updated withholding requirements so that employers can avoid unnecessary penalties and employees do not have unexpected income tax liability.

The emergency rule is effective February 16, 2018, and will remain in effect until its expiration or upon the adoption of the final rule, whichever comes first.

No supplemental withholding rate for Louisiana

Louisiana tax law does not provide for an optional withholding rate to be used for supplemental wages. According to the employer withholding guide (page 6):

"Supplemental and vacation pay is subject to withholding. The amount of withholding would be determined in the same manner as the employee's regular payroll. It does not matter if supplemental pay or vacation pay was included in the regular payroll or paid at a different time."

On the Department's website, under Frequently Asked Questions, it states the following:

Are supplemental wage and vacation payments subject to withholding?

Yes.?R.S. 47:111(A) defines wages as all compensation paid for services performed by an employee for an employer, including the cash value of all compensation paid in any medium other than cash. Based on this definition, supplemental wage and vacation pay would be subject to income tax withholding the same as the employee's regular payroll even if the supplemental wage or vacation pay was paid separately.

The Department has not yet updated its website with the revised employer withholding guide. Once updated, it will be available here.

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