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 payroll taxes
Here’s what you need to know about withholding payroll taxes in Missouri.
- Missouri payroll taxes start with employees filling out Form MO W-4. This information helps you determine how much you should withhold.
- If an employee does not complete this form, you will need to withhold tax as though no exemptions were claimed.
- Employees need to update Form MO W-4 in case of life events (such as marriage, divorce, birth or adoption of a child, etc.) which may impact their taxes.
- The personal income tax rate in Missouri is 0%–4.95%.
- Missouri does not have reciprocity with other states.
Additional Missouri forms
In addition to Form MO W-4 mentioned above, Missouri employers also need to file the following forms:
- Employer’s Return of Income Taxes Withheld (MO-941)*
- Quarter-Monthly Withholding Tax Payments (MO-941P) electronic filing only*
- Transmittal of Wage and Tax Statements (MO-W3)
- Wage and Tax Statements (State W2)
- Quarterly Contribution and Wage Report (MODES-4-7)
- Quarterly Wage Report Continuation Sheet (MODES-10B)
- MO New Hire Report
- Various local returns
Missouri unemployment tax rate
Missouri requires most employers to pay unemployment insurance tax to help compensate workers who are out of work through no fault of their own.
- Employers pay Missouri unemployment tax on the first $10,500 of an employee’s wages.
- New employers pay at a rate of 2.511% and 1% for non-profits.
- Experienced employers pay at a rate of 0–13.2%.
- Unemployment tax in Missouri should be paid quarterly online at UInteract.
Paying Missouri taxes
Here’s what you need to know about paying Missouri taxes:
- How often employers pay depends on the amount of tax you withhold in a year.
- Missouri’s payment frequencies are: weekly, monthly, quarterly, and annually.
Other Missouri taxes
Missouri employers are also required to pay or withhold the following taxes.
- St. Louis local taxes (including the payroll expense tax).
- Kansas City Taxes
Missouri minimum wage
In 2023, the minimum wage in Missouri is $12.00 per hour.
Missouri overtime pay
Because Missouri doesn’t have any state law governing overtime pay, the federal rules under the Fair Labor Standards Act apply. Generally speaking, hourly employees are to be paid time-and-a-half for all hours worked over 40 hours in a week.
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.
Employers in Missouri need to report new employees.
- New hires must be reported to New Hire Information.
- New hires must be reported within 20 days of their first day of work.
You must provide a pay stub to every employee that includes:
- Company’s legal name and address
- Employee’s name and last four digits of their Social Security number
- Pay period beginning and end dates
- Total hours worked
- Rate of pay
- Gross wages
- The amount and reason for any deduction
Employers must pay final wages to departing employees on their last day.
Missouri law requires employers to provide the following types of time off to employees.
- Jury duty
- Voting leave: In some circumstances, employers are required to provide up to three hours of paid time off to allow employees to vote.
- Domestic violence leave is required of employers with 20 or more employees
Federal payroll taxes
In addition to Missouri-specific taxes, both you and your employees will pay a variety of federal payroll taxes. Check out the breakdown below.
Federal income tax
Unless they are exempt, your employees will pay federal income tax.
- You must withhold federal income tax from employees’ pay, unless they are exempt.
- Each employee’s Form W-4 will differ based on their filing status and dependents, among other details—so the amount of income tax to be withheld will vary.
- Form W-4 does not need to be sent to the IRS, but should be kept for your records.
Both you and your employees will pay Federal Insurance Contributions Act, or FICA tax.
- FICA is made up of the Medicare tax and the Social Security tax.
- In 2023, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $2,600.
- The Medicare tax requires employers and employees to each contribute 1.45% of all wages.
- See the IRS webpage for details, like maximum thresholds.
Like the state, the federal government also has an unemployment tax, called FUTA, which is paid by employers.
- FUTA is an annual tax an employer pays on the first $7,000 of each employee’s wages.
- The FUTA rate for 2023 is 6.0%, but many employers are able to pay less, for instance, up to 5.4% each year due to tax credits.
- Most employers will pay this tax annually with Form 940. But larger employers with more than $500 in tax due will have to pay quarterly.
Additional Medicare tax
The Additional Medicare tax is paid by employees. Here’s what you should know:
- For employees who earn over $200,000 per year, 0.9% of earnings will need to be withheld for the Additional Medicare tax.
- Whether or not your employee owes this tax may depend on their filing status.
Paying federal taxes
How often you’ll pay federal payroll taxes depends on how much you owe.
- Semi-weekly or monthly payments are required for federal withholding, Additional Medicare, and FICA taxes. And every quarter, a summary payroll tax return is due on Form 941, Employer’s Quarterly Federal Tax Return.
- Quarterly or annual payments are required for federal unemployment tax. Most employers will pay annually, but quarterly payments are necessary if you owe more than $500. Each time you make a payment, you’ll need to file a payroll tax return on Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.
We’re here to help
If you don’t love manual number crunching and payroll taxes sound overwhelming to you, take advantage of Gusto’s full-service payroll options or use an experienced accountant to help you with the process.