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Louisiana simplified its income tax in 2025 (new top rate 4.25%), and New Orleans adds a local sick leave requirement. One of the lower new-employer SUTA rates in the South. Rippling handles LDR, LWC, and New Orleans sick leave compliance.
Louisiana is a major Gulf Coast economy with strengths in energy (oil and gas), petrochemicals, agriculture, maritime, and tourism. Louisiana passed major income tax reform effective January 1, 2025, replacing a prior graduated system (top rate 6%) with a simplified 3-bracket structure (top rate 4.25%). Louisiana is a right-to-work state with no state-mandated paid family leave and a low SUTA burden. New Orleans adds local sick leave requirements for larger employers.
Rippling’s Louisiana payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| LA SUI (LWC) | New employer 1.16% | On first $7,700 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required for most employers |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Louisiana State Income Tax | 1.85%–4.25% | 3-bracket progressive; top rate 4.25% (2025 reform reduced from prior 6%) |
| Louisiana Income | LA Rate |
|---|---|
| Up to $12,500 | 1.85% |
| $12,501–$50,000 | 3.5% |
| Above $50,000 | 4.25% |
Effective January 1, 2025 (2024 used prior graduated system with top rate up to 6%). LA withholding remitted to LDR. Annual L-3 reconciliation.
Final Pay: Louisiana requires final pay on or before the next regular payday, or within 15 days of termination (whichever is sooner). Accrued vacation: Louisiana treats promised vacation as wages if the employer’s policy provides for payout.
Louisiana passed significant income tax reform in late 2024, effective January 1, 2025: the prior graduated system (top rate 6%) was replaced with a flat 3-bracket structure: 1.85% (up to $12,500); 3.5% ($12,501–$50,000); and 4.25% above $50,000. This represented a significant rate cut and simplification. Rippling updates Louisiana withholding for the new 2025 rates.
Louisiana’s minimum wage is $7.25/hour — matching the federal minimum. Louisiana has not enacted a state minimum above the federal floor. New Orleans and other cities do not have separate local minimums.
Louisiana requires workers’ comp coverage for most employers with one or more employees. The Louisiana Workforce Commission Office of Workers’ Compensation administers the system. Coverage through private insurers or the Louisiana Workers’ Compensation Corporation (LWCC, the state-created insurer). Rates vary by risk class.
New Orleans is unique in that employees may be subject to certain city-specific employment ordinances, including the New Orleans Earned Paid Sick Leave ordinance (employers with 20+ employees must provide 1 hour per 30 hours worked, up to 40 hours/year). Baton Rouge is the state capital and a major petrochemical and higher education hub. Rippling tracks New Orleans sick leave for applicable employers.
