Louisiana Senate Bill SB348

Louisiana 2018 Regular Session

• Introduced: 3/2/18
• Refer: 3/2/18
• Refer: 3/12/18

Caption

Provides a penalty waiver for employers that did not immediately begin using the 2018 state income tax withholding tables. (gov sig) (OR NO IMPACT SG RV See Note)

Impact

If enacted, SB 348 would directly amend existing tax laws to provide relief for both employers and employees from potential penalties associated with incorrect withholding. By establishing a waiver, it aims to reduce the financial burden on employers who may have unintentionally miscalculated tax withholdings due to the changes in withholding tables. The bill effectively acknowledges that the responsibility for compliance extends to the actions of employers and that individuals should not be penalized for circumstances beyond their control.

Summary

Senate Bill 348 aims to address issues arising from the implementation of the new 2018 state income tax withholding tables. Specifically, the bill seeks to waive penalties for employers who failed to withhold the correct amount of tax during the initial months of 2018 due to not using the updated withholding tables promptly. Furthermore, it provides a provision for individuals to waive the underpayment penalties for their estimated income tax if the reason for underpayment was because their employers did not implement the new withholding tables in a timely manner. The bill highlights the state's recognition of practical challenges faced by employers during the transition period to new tax regulations.

Sentiment

Overall, the sentiment surrounding SB 348 appears to lean positively, as both employers and employees are likely to benefit from the provisions within the bill. Supporters may view the legislation as a fair solution that acknowledges the challenges faced during the tax table transition. However, there might be some contention regarding the clarity of the requirements for establishing the 'good faith' criteria for waivers, especially on the part of employers who could be concerned about potential liabilities arising from misjudgments.

Contention

A notable point of contention surrounding SB 348 is the potential for differing interpretations of what constitutes 'good faith' in the context of tax compliance. Employers may worry about the possibility of being assessed penalties if deemed non-compliant, despite their efforts to implement the withholding tables promptly. Furthermore, the timing of the implementation raises questions regarding its adequacy in protecting employees from penalties related to underpayment, which could lead to further discussions in the legislature regarding the balance between regulatory compliance and practical workability.