Missouri Hourly Paycheck Calculator
In the heartland of the country, you’ll find Missouri and the famous St. Louis Gateway Arch, built as a monument for the westward expansion of the U.S. This impressive structure symbolizes the strength and pioneering spirit of early settlers.
That same strength and spirit carries through today to Missouri’s entrepreneurs. Running a small business is both challenging and rewarding. That said, when it comes to payroll taxes, you may be left scratching your head trying to keep track of forms, tax rates, and deadlines. We hope this guide to Missouri’s payroll taxes and paycheck rules will leave you feeling confident about paying your employees. And remember: payroll accountants are available to help.
Missouri state payroll taxes
Missouri withholding tax
You’ll want to start by making sure your company is registered with the Missouri Department of Revenue to receive your Missouri tax I.D. number. This number is different from your federal employee identification number (FEIN), and it’s the one you’ll use when communicating with the state.
When employees begin working for you, have them complete Form MO W-4, Employee’s Withholding Certificate.
The amount you’ll withhold is primarily determined by your employee’s filing status, which they will indicate on this form. This information, along with your employee’s pay amount and Missouri’s tax tables or withholding formula, will help you calculate how much tax to take out.
But if you’d like to skip the tax tables and math calculations, use payroll software. With just a few clicks of the mouse, the software will make the withholding calculations for you. You can get a quick peek at what tax software can do by using Gusto’s Missouri Hourly Paycheck Calculator.
Paying withholding taxes in Missouri
Missouri has four payment frequencies for paying withholding tax: weekly, monthly, quarterly, and annually. The Department of Revenue will notify you of your payment frequency.
Annual reports of withholding tax are required for all companies, regardless of how frequently you pay. You’ll use Form MO W-3, Transmittal of Tax Statements. You’ll also need to send copies of your federal Form W-2 and 1099-R. If you have 250 or more employees, you’ll need to submit this information electronically.
You can review Missouri’s helpful employer’s tax guide to get all the details on how to deduct withholding tax from your employees’ paychecks.
Missouri unemployment tax
Missouri charges employers an unemployment tax that’s used to provide financial assistance to workers who’ve lost their jobs through no fault of their own.
Missouri’s unemployment tax is charged on the first $11,000 of each employee’s wages each year. This amount, called the wage base, can change each year, but it will never be more than $13,000 or less than $7,000.
Tax rates for new employers range from 1% to 2.376%, depending on the industry the business operates in.
After reporting wages and paying unemployment tax for a while, employers’ tax rates are adjusted based on their use of the unemployment program. These rates, called experience rates, range from 0% to 6%.
Each quarter, employers must report employee wages to the Division of Employment Security and pay the tax due. This information is used to determine the monetary benefits the worker would receive if they filed an unemployment claim.
Keep in mind that all employers with 50 or more employees must file their quarterly reports electronically.
Local taxes
Employers in Kansas City and St. Louis are also subject to local payroll taxes.
Other Missouri paycheck rules and regulations
Don’t forget about these Missouri paycheck rules when paying your employees.
- Minimum wage: Missouri’s minimum wage is $11.15 per hour.
- Overtime: Hourly employees who work more than 40 hours a week must be paid overtime at least 1 ½ times their regular hourly rate.
- Final paychecks: When you terminate an employee, final wages are due immediately. Employees who resign can be paid on the next regularly scheduled payday.
- New hire reporting: Employers have 20 days to report newly hired employees to the Department of Revenue.
Workers’ Compensation insurance: Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
Federal payroll taxes in Missouri
There are four key federal payroll taxes. The employee pays some, you pay some, and some are jointly paid.
| Federal Payroll Taxes | ||
| Employee-paid | Employer-paid | Jointly-paid |
| Federal income tax | Federal unemployment tax | FICA |
| Additional Medicare |
Federal income tax
Just like Missouri’s state withholding tax, you’ll need to withhold federal income taxes from your workers’ paychecks.
It starts by having employees complete Form W-4, Employee’s Withholding Certificate, when they begin working for you. Information you’ll need to figure out how much tax to withhold will come from this form. Things like the number of dependents and tax filing status impact the tax withholding amount.
With this information, your worker’s pay amount, and the federal tax tables, you can calculate the amount of tax to take out. Don’t forget that payroll software can make this process easier—no tax tables. Just a few clicks and taxes are calculated for you automatically each pay period.
Additional Medicare tax
Some of your employees may need to pay the Additional Medicare tax.
If you have employees who earn more than $200,000 per year, you’ll need to withhold 0.9% of the excess wages for the Additional Medicare tax.
Federal unemployment tax
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but most employers only have to pay 0.6% each year.
FICA
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
| FICA Tax | |
| Social Security tax | 6.2% on the employee’s first $147,000 in 2022 |
| Medicare tax | 1.45% on all wages |
| Total tax | 7.65% |
Paying federal payroll taxes
How often you’ll need to pay your federal payroll taxes depends on how much you owe. Payment frequencies are:
- Semi-weekly
- Monthly
- Quarterly
- Annually
Federal income tax, Additional Medicare tax, and FICA are paid most frequently—either semi-weekly or monthly. Quarterly and annual payments aren’t allowed. And each quarter, you’ll need to file a payroll tax return using Form 941, Employer’s Quarterly Federal Tax Return.
Federal unemployment tax is paid either quarterly or annually. Most employers will pay annually, but you’ll need to make quarterly payments if you owe more than $500. Each time you make a payment, you’ll need to file Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.
That’s Missouri payroll taxes in a nutshell. You can get a quick look at how easy payroll tax calculations can be when you use software by checking out Gusto’s Missouri Hourly Paycheck Calculator.
Disclaimer
The information provided by the Employer Tax Calculator is for general information and estimation. All of the taxes or fees that apply to your business may not be accounted for, or fully up to date. Gusto, Inc. (dba “Gusto”) does not promise or guarantee that the information in the Employer Tax Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct result or an indirect consequence of its use. By using the Employer Tax Calculator, you waive any rights or claims you may have against Gusto in connection with its use.