Ope - my apologies, I was answering your earlier question regarding the exempt Louisiana status!! Sorry!  Also - I did trial run with one of our LA clients and I did not have the negative withholding like you mentioned.  I have several we will run next week.  I'll keep you posted if I have a similar issue.  Until there is a concrete solution, you may have to use withholding tables from LA Dept of Rev and manually change them....

Good question.  I tried it out and you are correct, it doesn't work.  Maybe you can add a new state withholding code for exempt and name it LAE perhaps?  You would have to figure out the coding though.  I'm not sure if you could copy & paste from a previous year's file that did work with the 99 exemptions to come thru as exempt?  

You could always call customer support.  But honestly, I've never had much luck with that.  Their support personnel usually don't understand how payroll tax tables work.  You know, like how the Head of Household tables are still non-existent... 😬