Missouri Salary Paycheck Calculator
Thinking about payroll and payroll taxes makes most small business owners shudder. There are so many different taxes, forms, tax rates, and due dates. It’s hard to keep it all straight. You’d likely rather be focused on building and growing your business.
We’re here to help you understand the basics of payroll taxes in Missouri with the answers to these FAQs.
Missouri state payroll taxes
How is Missouri withholding tax calculated?
The amount of tax you’ll take out of your employees’ paychecks for Missouri withholding taxes depends on information from Form MO W-4, Employee’s Withholding Certificate. Have employees complete this form when they start working for you. They should update the form anytime their tax situation changes.
Your employee’s filing status primarily determines the withholding amount. You’ll use this and the Missouri tax tables or withholding formula to calculate the withholding amount.
How often does withholding tax need to be paid to Missouri?
Ensure your company is registered with the Missouri Department of Revenue, and you have your Missouri tax I.D. number. You’ll use this number on your tax payments and tax returns.
Missouri has four payment frequencies:
- Weekly
- Monthly
- Quarterly
- Annually
How often you’ll pay depends on how much you owe, and the Department of Revenue will let you know your payment frequency.
All companies need to file annual withholding tax reports. You’ll use Form MO W-3, Transmittal of Tax Statements, and send copies of your federal Form W-2 and 1099-R. But if you have 250 or more employees, you’ll need to file your annual report electronically.
How is the Missouri unemployment tax calculated?
Employers pay Missouri’s unemployment tax. The first $11,000 of each employee’s wages each year is taxed. This amount, called the wage base, can change, but it will always be between $7,000 and $13,000.
The tax rate for new employers varies depending on the industry but ranges from 1% to 2.376%.
After your business has accumulated enough experience submitting wage reports and paying tax to Missouri’s unemployment program, you’ll receive an experience rate that’s based on your historical payroll amounts and the amount of claims paid to your former workers. Experience rates range from 0% to 6%.
Tax payments and wage reports are due quarterly to the Division of Employment Security. Employers with 50 or more employees must file their quarterly reports electronically.
What is the salary threshold in Missouri?
Because the state of Missouri doesn’t have its own salary threshold, it adheres to the federal salary threshold, which is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
When are final paychecks due to employees?
If you terminate or lay off an employee, their final payment is due immediately. Employees who resign can be paid on the next regularly scheduled payday.
Do new hires need to be reported to the state?
Yes, employers have 20 days to report new employees to the Department of Revenue.
When do employers need to have Workers’ Compensation insurance in Missouri?
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
How do employers calculate federal withholding tax?
You’ll need to get a completed Form W-4, Employee’s Withholding Certificate, from each employee when they start working for you. Information from this form will be the foundation for your withholding calculations.
With things like their number of dependents and their tax filing status, which you’ll get from Form W-4, you’ll use federal tax tables to determine how much tax to take out your employees’ paychecks.
What is the Additional Medicare tax?
Certain employees pay the Additional Medicare tax. When an employee earns more than $200,000 a year, you’ll need to take this tax out of their paycheck.
The tax rate you’ll use is 0.9% on all wages over $200,000.
How is the federal unemployment tax calculated?
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.
How is FICA tax calculated?
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% |
When are federal payroll taxes due?
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.
Now you know the basics. If you’re ready to have Gusto take the reins of your payroll processing, we’ve got you covered with expert service and on-demand processing.
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.