The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 157 Original 2021 Regular Session Allain
Present law requires nonresident individuals to pay individual income tax to the state for all income
earned within or derived from sources in the state.
Proposed law exempts nonresident employees who perform their employment duties in this state for
30 or fewer days during a calendar year.
Proposed law provides that this exemption for employees only applies if all of the following are true:
(1)The nonresident individual performed employment duties in this state for 30 or fewer days
during the year.
(2)The nonresident individual performed employment duties in more than one state.
(3)The nonresident individual did not receive the wages for performing duties as a professional
athlete, staff member of a professional athletic team, professional entertainer, public figure,
or qualified production employee.
(4)The nonresident individual's state of residence either provides a substantially similar
exemption or does not impose an individual income tax.
(5)The nonresident individual did not have any other Louisiana source income.
Present law requires every employer paying wages to an employee performing services in the state
to deduct and remit withholding tax.
Proposed law exempts employers from this requirement for employees who perform employment
duties in this state for 30 or fewer days during the year if the employee is exempt from state
individual income tax under proposed law.
Proposed law provides that if a nonresident employee performs employment duties in this state for
more than 30 days, that the employer is required to remit tax to this state for every day in that
calendar year, including the first 30 days.
Proposed law does not allow the Dept. of Revenue to impose penalties or charge interest for failure
to withhold by an employer with nonresident employees if the employer relied on:
(1)Data from a time and attendance system specifically designed to allocate employee wages
for income tax purposes among all taxing jurisdictions. (2)In the absence of a time and attendance system, on its own records maintained in the regular
course of business or on the employee's determination of the time the employee performed
employment duties in this state provided that the employer did not have actual knowledge
of fraud on the part of the employee.
Effective upon the signature of the governor.
(Amends R.S. 47:242(1)(g) and (2) and 293(10); adds R.S. 47:111(A)(12), 112.2, and 248)