Income/Franchise:
Louisiana: New Mobile Workforce Law Imposes Nonresident Withholding Using a 25-Day Threshold
S.B. 157, signed by gov. 6/16/21. Effective immediately and applicable as of January 1, 2022, new law generally exempts nonresident employees from a Louisiana income tax liability if they perform employment duties in Louisiana for 25 or fewer days during the calendar year, and correspondingly exempts their employers from a state income tax withholding requirement for such employees. However, this exemption does not apply to certain professional athletes, staff members of professional athletic teams, professional entertainers, public figures, or qualified motion picture production employees. Under this “mobile workforce” state legislation, if a nonresident employee works in Louisiana for more than 25 days in a calendar year, the individual generally is subject to state income taxation on all days of earnings in Louisiana, including the first 25 days; and corresponding state income tax withholding would be required of such individual’s employer. Please contact us with any questions.
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