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Unemployment Insurance Tax (FUTA/SUTA): Louisiana

Unemployment Insurance Tax (FUTA/SUTA) requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • Louisiana uses both an 11-factor test and the ABC test to determine if a worker is an independent contractor or an employee for state unemployment insurance (SUI) coverage purposes. See Determining Unemployment Tax Coverage.
  • Taxable wages for SUI purposes refers to all compensation for services, including vacation pay, holiday pay, dismissal pay, commissions, bonuses, the cash value of all compensation in any medium other than cash, and federal Worker Adjustment and Retraining Notification (WARN) Act payments received. See SUI Taxable Wages.
  • The annual range of contribution rates applicable to new and experienced employers is based on the average rate of the North American Industry Classification System (NAICS), plus three additional assessments. Experience rates are calculated annually based on the employer's taxable wages, SUI taxes paid and benefit charges through June 30 of the preceding calendar year. See Contribution Rates; Experience Rating Method.
  • Louisiana's anti-SUTA dumping law follows the federal model law and imposes other penalties in addition to those of the federal model. See SUTA Dumping.
  • Employers may make voluntary contributions by a certain date to lower their SUI tax rates. Multiple related corporations/employers may use a common paymaster for administering unemployment insurance if certain requirements are met. See Voluntary Contributions; Joint or Combined Accounts.
  • Employers are required to electronically file Form LWC-ES 4, Employer's Quarterly Wage and Tax Report. Quarterly reports must include each employee's Standard Occupational Classification (SOC) System code or job title. Multiple worksite reporting is also required in Louisiana. See Quarterly Reporting Requirements; Multiple Worksite Reporting.
  • An employer's account will not be relieved of charges for overpayments resulting from the employer's failure to properly respond to requests for information about benefit claims. See Benefit Overpayments.
  • A specific set of records must be kept by all employers for SUI purposes for at least five years. See Recordkeeping Requirements.