Form L-4 Employee Withholding Exemption Certificate

Form L-4 Employee Withholding Exemption Certificate: Key Takeaways

• Form L-4 is used by Louisiana employees to set the amount of state income tax withheld from wages.
• Employees must provide personal details, filing status, exemptions, dependents, and any additional withholding instructions on Form L-4.
• Employers must withhold state tax without exemption if Form L-4 is not submitted.
• Electronic filing of Form L-4 is permitted with security and perjury safeguards; paper options must be available upon request.

Form L-4, the Employee Withholding Exemption Certificate for Louisiana, is key to ensuring correct state income tax withholding.

This article outlines how employees complete Form L-4 and employers comply with Louisiana withholding rules.

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What Is Form L-4 and Why Is It Important?

Form L-4 allows Louisiana employees to specify their withholding preferences for state income tax from wages.

Proper completion helps prevent owing taxes at filing time or having too much withheld during the year.

Employers depend on this form to withhold the correct tax amount each pay period and avoid under- or over-withholding issues.

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Key Components of Form L-4 Employee Withholding Exemption Certificate

Personal Information Section

Employees enter their full name, Social Security Number, and current home address to identify themselves accurately on the form.

Staff in roles such as Receptionist must also submit accurate personal info for tax purposes.

Filing Status

Employees select one filing status option:

• No exemptions or dependents claimed
• Single
• Married

Exemptions and Dependents

Form L-4 includes fields for employees to declare their exemption claims.

• Block A: Number of personal exemptions claimed.
• Block B: Number of dependents to be claimed on their tax returns.

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Additional Withholding Adjustments

Employees may request more tax withheld per paycheck or indicate a decrease by entering a negative amount. This helps fine-tune withholding amounts beyond basic exemptions.

Filing and Compliance Requirements for Form L-4

Submission: Employees must submit Form L-4 to their employer to establish withholding preferences.

If no form is submitted, Louisiana law requires employers to withhold state income tax without applying any exemption.

Updates: Employees are obliged to provide a new Form L-4 within 10 days if exemptions decrease (except in death cases) and may update anytime if exemptions increase.

Penalties: Intentionally providing false information or withholding required exemption details can lead to penalties under state tax laws.

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Electronic Filing of Form L-4 Under Louisiana Rules

Employers may offer electronic systems enabling employees to submit Form L-4 digitally.

These systems must:

• Protect confidentiality and data integrity.
• Authenticate employee identity.
• Include a perjury statement with electronic signature to affirm truthfulness.

Employers must also provide a paper filing option if an employee cannot use, or objects to, the electronic system.

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Exemption from Withholding With Form L-4E

Employees who expect no Louisiana income tax liability this year and had none last year may claim exemption from withholding by submitting Form L-4E.

This certificate requires the employee to certify under penalty of perjury that they meet eligibility criteria for exemption.

Common Scenarios and Best Practices for Handling Form L-4

Employees should regularly review and update their Form L-4, especially after major life or financial changes such as marriage, divorce, birth of a child, or a change in income.

Employers should maintain secure records of submitted forms and review compliance regularly to ensure proper withholding.

Encouraging employees to understand the impact of exemptions and additional withholding adjustments can improve withholding accuracy.

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Official Resources for Form L-4 and Louisiana Tax Withholding

• Louisiana Department of Revenue
• Employee Withholding Exemption Certificate (Form L-4)
• Exemption from Withholding Louisiana Income Tax (Form L-4E)
• Louisiana Administrative Code Title 61, § I-1505 - Electronic Systems
• IRS Topic No. 753, Form W-4 Overview

Form L-4 Employee Withholding Exemption Certificate: Conclusion

Form L-4 is a crucial document for employees and employers in Louisiana to manage state income tax withholding properly.

Accurate completion and timely submission of the form help employees avoid unexpected tax bills or excessive withholding at year-end.

Employers should facilitate easy access to Form L-4, including electronic options, while ensuring compliance with state regulations.

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