How to Do Payroll in Louisiana: A Step-by-Step Guide

Last reviewed: July 2026

Louisiana gives employers more flexibility on pay schedules than most states, but the SUI side of the equation is less standardized — your new-employer rate depends on your industry classification rather than one flat number. Here's the order to work through registration and setup.

Step 1: Get Your Federal EIN

Every Louisiana employer needs a federal Employer Identification Number before anything else. Apply free at IRS.gov and you'll have the number in about 15 minutes. You'll need it for every state registration that follows.

Step 2: Register with Louisiana State Agencies

New Louisiana employers need a withholding account with the Louisiana Department of Revenue and an unemployment insurance account with the Louisiana Workforce Commission (LWC). If you're also forming an LLC or corporation, the geauxBIZ one-stop portal from the Secretary of State can register your entity and both tax accounts in a single filing.

From the Payroll Desk

Register before your first payroll, not after. Give the state agencies a few business days to process, since your account numbers need to exist before you deposit any withheld tax.

Step 3: Set Up State Withholding

Louisiana moved to a flat 3% individual income tax rate for 2025 and 2026, replacing the old graduated brackets. Employees claim exemptions on Form L-4 (officially numbered R-1300), the Employee's Withholding Exemption Certificate, alongside the federal W-4.

Register your withholding account through the Louisiana Department of Revenue. Your deposit frequency — quarterly, monthly, or semimonthly — depends on how much you withhold each month, with Form L-1 due at quarter-end for quarterly filers.

Step 4: Register for Louisiana SUI

State Unemployment Insurance is administered by the Louisiana Workforce Commission. Unlike most states, Louisiana doesn't publish one flat new-employer rate — you're assigned the average rate for your industry classification, which works out to roughly 1.16% for many non-construction employers, on the first $7,000 of each employee's wages. The rate can't fall below 1.00% or exceed the maximum experienced rate of 6.20%.

Workers' compensation coverage is required starting at your first employee — one of the lowest thresholds nationally — so line that up alongside your SUI registration rather than treating it as an afterthought.

Step 5: Pick a Pay Frequency and Handle Final Pay

Most Louisiana employers can set their own pay schedule; there's no blanket state law requiring weekly or biweekly pay. The exception is oil, gas, mining, manufacturing, and public service employers, who must pay at least twice a month and, without a designated payday, default to the 1st and 16th.

Final pay rules apply to every employer regardless of industry: wages are due on the next regular payday or within 15 days of separation, whichever is earlier.

New hires need to be reported within 20 days of their start date — see our New Hire Reporting guide for the required fields.

Step 6: Deposit and Filing Calendar

Once payroll is live, three calendars run at the same time:

• Federal: Deposit withheld income tax and FICA on the IRS semi-weekly or monthly schedule, then file Form 941 quarterly.
• Louisiana withholding: Deposit quarterly, monthly, or semimonthly based on your withholding volume, with Form L-1 filed quarterly.
• Louisiana SUI: File quarterly wage reports and pay unemployment tax to the LWC.

Our paycheck calculator is a quick way to sanity-check withholding amounts before you deposit, especially while you're still learning which filing frequency applies to your business.

Step 7: Year-End W-2s

By January 31, issue Form W-2 to every employee and file copies with the Social Security Administration, along with your final Form 941 and Form 940 for the year. Reconcile the Louisiana withholding shown on your W-2s against the total you actually deposited to LDR across the year before you submit anything.

Send new employees to our W-4 Helper for a guided walkthrough of the current federal withholding form.

Frequently Asked Questions

What are the basic steps to run payroll in Louisiana?

Get a federal EIN from the IRS, register with the Louisiana Department of Revenue for state withholding, register with the Louisiana Workforce Commission for SUI, collect W-4 and L-4 forms from each employee, set a pay schedule, then run payroll, deposit taxes on schedule, and file quarterly and year-end returns.

What is Louisiana's state income tax rate for withholding purposes?

Louisiana moved to a flat individual income tax rate of 3% for tax years beginning on or after January 1, 2025, replacing the old graduated brackets. Employees claim exemptions on Form L-4 (R-1300), the Employee's Withholding Exemption Certificate.

How often do Louisiana employers need to pay employees?

Most Louisiana employers can set their own pay schedule; there's no general state law dictating frequency. Oil, gas, mining, manufacturing, and public service employers face stricter twice-monthly rules. On separation, final wages are due on the next regular payday or within 15 days, whichever is earlier.

What is the Louisiana SUI rate for new employers?

New Louisiana employers are assigned the average unemployment insurance rate for their industry classification, roughly 1.16% for most non-construction employers in 2026, on the first $7,000 of each employee's wages. The rate can't be set below 1.00% or above the maximum experienced rate of 6.20%.