Federal and State Tax Withholding
All employees are required to complete federal and state withholding certificates. Failure to provide Payroll with a valid withholding certificate will result in the withholding tax to be withheld at the highest rate of “Single” marital status.
It is recommended you complete new tax withholding form(s) when changes to your personal or financial situation change. For more information on withholding and when you must furnish a new Form W-4, see IRS Publication 505.
If you're unsure how much you should have withheld each year, you can use the IRS' Tax Withholding Estimator to calculate your overall tax obligation.
Below are some things to consider when completing/changing your tax withholdings:
- Federal withholding changes
- If you claim exemption from withholding Federal taxes on your W-4, be sure to review the Exemption from Withholding section of IRS Publication 505 or consult your tax consultant to determine if you’re eligible to claim this exemption.
- State tax withholding
A withholding certificate is required to be completed for the state in which you perform the services for Centenary. If your home state does not have a reciprocal tax agreement with Louisiana, you should expect to file two state tax returns: one as a resident for the state where you are living, and one as a nonresident for the state where you work. To learn more please visit: Filing Taxes When You Live in One State and Work in Another - see below for more information.
Contact the Payroll Office at 318-869-5127 to request a the tax withholding forms.
How to complete or make a change to your existing Federal Tax withholding
- Filling Out the W-4 Form | Personal Finance 101 – this video runs about 4 minutes and provides a good brief intro
- How to fill out the IRS Form W4 2023 – this video runs about 14 minutes and provides a more thorough review
- Step-by-step instructions on how to fill out a W4 – these are written instructions
If you live in one state but work in another, taxes can be complicated.
Taxes are generally based on where you physically do your job – the state where the income is earned. Some states have reciprocity agreements, so you're only taxed by your state of residence even if you cross state lines to go to work.
Here's what you need to know about taxes if you work in a different state from where you live.
States with Reciprocity
If the state in which you work has a reciprocity agreement with the state in which you live, the procedure is usually simple.You won’t be taxed on where the income is earned; you’ll just be taxed on where you live. You must complete the W4 to have income taxes withheld for the state where you live, and you generally file a state income tax return like you would if you worked in your home state.
States without Reciprocity
If the state where you work doesn’t have reciprocity with the state where you live, you may need to take extra steps when you file your income tax return.
In this case the taxes withheld from your pay should be for the state where you work; you will need to file a nonresident income tax return with that state as well as a resident return in your home state. In most cases, you get a credit for the taxes you paid to the state where you work, which reduces your income tax liability in your state of residence.
How to Avoid Complications
Here are three steps you can take to help avoid complications if you live and work in two different states:
- Determine if your resident state and work state have reciprocity; then make the appropriate update to your state withholding form..
- If you move to a different state, be sure to change/update the state income tax withholding form on file.
- If the states don’t have reciprocity, you’ll usually need to file a nonresident tax return for the state where you work and a resident tax return for the state where you live. Your state withholding should be listed as LA on your withholding form.
If you need further assistance or need to request a password reset when logging in to the eSelfServe site, please contact Linda Montgomery at lmontgomery@centenary.edu or (318) 869-5127.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.