Louisiana payroll taxes for employers (2026)

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The Louisiana Workforce Commission (LWC) taxes just the first $7,000 of each employee's 2026 wages for unemployment, and a new employer pays its industry's average rate, never less than 1% (US Department of Labor table and Bloomberg Tax, checked October 2026); Louisiana also withholds state income tax. What stands out is how simple withholding has become: the 2026 Department of Revenue withholding formulas use a single 3.09% rate with a $12,875 standard deduction for single filers.

SUTA wage base
$7,000
New employer SUTA rate
Industry average rate
State income tax
Yes
Minimum wage
$7.25
On this page

Louisiana payroll quirks worth knowing

Louisiana's $7,000 wage base matches the $7,000 federal FUTA base, and it fell from $7,700 per Bloomberg Tax, a secondary source. There is no single starting rate. LWC assigns a new account the average rate for its industry, so a restaurant and a trucking company can open the same week at different rates. Construction follows the same logic, with no separate published figure.

  • Sources disagree on the top rate: the US DOL table lists a 6.00% maximum for 2026, and Bloomberg Tax reports 6.2%. The minimum is 0.09%. We could not confirm either top rate on an LWC page.
  • No state minimum wage law: the federal $7.25 applies, with a $2.13 tipped cash wage.
  • Pay frequency only binds some industries: employers of 10 or more in manufacturing, mining or oil boring must pay twice a month. Other employers have no general state rule.
  • Final pay has a 15-day clock: discharged or resigned, the worker is due wages by the next regular payday or within 15 days of leaving, whichever comes first (La. R.S. 23:631).
  • Workers comp from the first hire: every employer doing business in Louisiana must provide coverage, through an authorized insurer or self-insurance.
  • PEO rules: Harbor Compliance, a secondary source, says a PEO must register with the Louisiana Department of Insurance and file an LWC registration form with a surety bond. We did not confirm this on a state page.

We found no state paid leave or disability payroll program in Louisiana.

Louisiana employer payroll facts at a glance

Louisiana employer payroll facts, 2026
ItemLouisiana rule or rateOfficial source
SUTA taxable wage base (2026)$7,000 (DOL; down from $7,700 per Bloomberg Tax)source ; source (secondary)
New employer SUTA rateIndustry average rate (not less than 1%, secondary: Bloomberg Tax)source ; source (secondary)
New employer rate, constructionIndustry average for construction classification (no separate figure published)
SUTA rate range0.09% to 6.00% (DOL); Bloomberg Tax reports 6.2% for 2026
2027 rates published?no
Unemployment agencyLouisiana Workforce Commission
State income tax withholdingYes. Withholding formulas use a 3.09% rate, effective Jan 1 2026; standard deduction $12,875 single, $25,750 joint or head of household (R-1306). Supplemental rate not addressed in R-1306.source
Paid leave or disability programsnone
Minimum wage 2026$7.25 (no state minimum wage law; federal applies)source ; source
Tipped cash wage 2026$2.13
Minimum wage 2027none announced
New hire reportingWithin 20 days of hire datesource
Pay frequency ruleTwice monthly (biweekly or semimonthly) for employers of 10+ in manufacturing, mining or oil boring; no general rule for others (DOL payday table)
Final paycheck ruleDischarged or resigned: next regular payday or within 15 days of separation, whichever comes first (La. R.S. 23:631)source
Workers comp requiredEvery employer doing business in Louisiana must provide coverage (no employee-count minimum). Not monopolistic (authorized insurers or self-insurance)source
PEO license or registrationyes per Harbor Compliance (secondary): Louisiana Department of Insurance initial registration plus LWC registration form and surety bond; not confirmed on a state page

Checked October 16, 2026 against the official sources linked in each row.

Louisiana paycheck math: what comes out and what you add

A Louisiana paycheck calculator has two sides. On the employee side, a $50,000 worker has 7.65% FICA withheld ($3,825.00 a year) plus federal and state income tax. Applying the 3.09% R-1306 rate to wages above the single standard deduction gives 3.09% x ($50,000 minus $12,875) = $1,147.16 a year. Treat that as an estimate; the R-1306 formula, including any dependent adjustments, is the authority. On the employer side, you pay matching FICA, FUTA and SUTA.

Louisiana employer tax on a $50,000 employee, 2026, at the 1% new employer floor
LineHow it is figuredAnnual cost
Social Security6.2% x $50,000$3,100.00
Medicare1.45% x $50,000$725.00
FUTA0.6% x $7,000$42.00
Louisiana SUTA1% floor x $7,000 wage base$70.00
Total employer payroll taxSum of the lines above$3,937.00

Source: IRS Publication 15 (2026); US DOL July 2026 table for the $7,000 base; Bloomberg Tax (secondary) for the industry-average new employer rate and its 1% floor. Checked Oct 2026. Your actual new employer rate is your industry average, which can be higher.

Even at the 6.00% DOL ceiling, SUTA would be 6.00% x $7,000 = $420.00, for $4,287.00 in total. At the 6.2% Bloomberg Tax reports, it would be $434.00, for $4,301.00. That narrow spread is the upside of a $7,000 base. Compare it with other states on the 2026 SUTA table.

Estimated yearly cost to employ this person
$0

How to register as an employer in Louisiana

  1. Get a federal EIN.
  2. Register for unemployment tax with the Louisiana Workforce Commission. Your rate notice will show your industry average.
  3. Register for withholding with the Louisiana Department of Revenue and load the 2026 R-1306 tables (3.09%, effective January 1, 2026).
  4. Report new hires within 20 days of the hire date to the Louisiana New Hire Reporting Center (newhire-reporting.com/LA-Newhire).
  5. Put workers comp in place before the first employee starts.

Payroll services for small businesses in New Orleans and statewide

Louisiana payroll is simpler than most: one flat state rate in the formulas, a $7,000 SUTA base and no state paid leave tax. What a provider must get right is your industry-average SUTA rate from the LWC notice, not a default, and the 15-day final pay deadline when someone leaves mid-cycle. A New Orleans restaurant also needs tip reporting and the $2.13 tip credit handled correctly.

Compare prices on our payroll software rankings and the hidden fees in what payroll services cost. For benefits and workers comp in one bill, see the PEO comparison. Hiring across the state line? Check Mississippi and Texas.

Frequently asked questions

What is the Louisiana SUTA wage base for 2026?
$7,000 per employee, according to the US Department of Labor July 2026 table of state UI provisions. Bloomberg Tax reports it fell from $7,700. The Louisiana Workforce Commission administers the tax.
What rate does a new Louisiana employer pay?
The Louisiana Workforce Commission assigns a new employer the average rate for its industry, not less than 1%, according to Bloomberg Tax. At the 1% floor that is $70 per employee on the $7,000 base.
What rate does Louisiana use for income tax withholding in 2026?
The Louisiana Department of Revenue R-1306 withholding formulas, effective January 1, 2026, use a 3.09% rate with a standard deduction of $12,875 for single filers and $25,750 for joint or head of household filers.
What does a $50,000 employee cost a Louisiana employer in payroll tax?
$3,937.00 in 2026 at the 1% minimum new employer rate: $3,100 Social Security, $725 Medicare, $42 FUTA and $70 Louisiana SUTA. A higher industry-average rate raises only the SUTA line, to at most $420 at the 6.00% ceiling in the US DOL table, or $434 at the 6.2% Bloomberg Tax reports.
When is a final paycheck due in Louisiana?
By the next regular payday or within 15 days of separation, whichever comes first, for both discharged and resigning employees (La. R.S. 23:631).
Sources (8)
  1. US Department of Labor: Significant provisions of state UI laws, July 2026 (checked Oct 16, 2026)
  2. Bloomberg Tax (secondary): Louisiana releases 2026 unemployment rates and wage base (checked Oct 16, 2026)
  3. Louisiana Department of Revenue: R-1306 withholding tables and instructions, 2026 (checked Oct 16, 2026)
  4. Louisiana New Hire Reporting Center: Compliance (checked Oct 16, 2026)
  5. Louisiana Legislature: La. R.S. 23:631 final wages (checked Oct 16, 2026)
  6. Louisiana Legislature: SB 198 digest, workers compensation coverage (checked Oct 16, 2026)
  7. US Department of Labor: State minimum wage laws (checked Oct 16, 2026)
  8. IRS: Publication 15 (Circular E), 2026 (checked Oct 16, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.