Missouri Wage and Payroll Tax Facts
August 1, 2023
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Missouri.
The Show-Me State requires minimum wage rates that are substantially higher than the rates required by the federal government. There are also local income taxes for residents in the cities of St. Louis and Kansas City.
When it comes to processing payroll, Missouri-based organizations must handle the following taxes in addition to those required by the federal government:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
- Local income taxes
The below information was last updated July 28, 2023. It is not intended as legal or tax advice.
Missouri Minimum Wage Rates
|
Wage Type |
Missouri Rates |
Federal Rates |
|
Minimum Wage |
$12.00 |
$7.25 |
|
Tipped Minimum Wage |
$6.00 |
$2.13 |
|
Actual Tip Credit |
$6.00 |
$5.12 |
|
Wage Type |
Missouri Rates |
Federal Rates |
|
Minimum Wage |
$12.00 |
$7.25 |
|
Tipped Minimum Wage |
$6.00 |
$2.13 |
|
Actual Tip Credit |
$6.00 |
$5.12 |
Missouri State Income Tax (SIT) Rates
Missouri's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:
|
Income Tax Bracket |
2023 Income Tax Rate |
|
$0 – $1,207.00 |
0.00% |
|
$1,207.01 – $2,414.00 |
2.00% |
|
$2,414.01 – $3,621.00 |
2.50% |
|
$3,621.01 – $4,828.00 |
3.00% |
|
$4,828.01 – $6,035.00 |
3.50% |
|
$6,035.01 – $7,242.00 |
4.00% |
|
$7,242.01 – $8,449.00 |
4.50% |
|
$8,449.01 and over |
4.95% |
|
Income Tax Bracket |
2023 Income Tax Rate |
|
$0 – $1,207.00 |
0.00% |
|
$1,207.01 – $2,414.00 |
2.00% |
|
$2,414.01 – $3,621.00 |
2.50% |
|
$3,621.01 – $4,828.00 |
3.00% |
|
$4,828.01 – $6,035.00 |
3.50% |
|
$6,035.01 – $7,242.00 |
4.00% |
|
$7,242.01 – $8,449.00 |
4.50% |
|
$8,449.01 and over |
4.95% |
|
Additional Missouri SIT Details |
|
|
Supplemental Withholding Computation |
4.90% |
|
Valid Filing Statuses |
|
|
Exemptions |
N/A |
|
Form W-4 |
Form MO-W-4 |
|
Reconciliation Frequency |
Annual |
|
Additional Missouri SIT Details |
|
|
Supplemental Withholding Computation |
4.90% |
|
Valid Filing Statuses |
|
|
Exemptions |
N/A |
|
Form W-4 |
Form MO-W-4 |
|
Reconciliation Frequency |
Annual |
Missouri State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
Missouri SUI Tax Details |
|
|
Taxable Wage Base |
$10,500 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.00% - 6.00% |
|
Rates for New Employers |
2.51% |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
Yes; due by January 15 of the year in which the payment will affect. |
|
Missouri SUI Tax Details |
|
|
Taxable Wage Base |
$10,500 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.00% - 6.00% |
|
Rates for New Employers |
2.51% |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
Yes; due by January 15 of the year in which the payment will affect. |
Missouri State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Missouri, however, doesn't require employers to collect an SDI tax.
Miscellaneous Missouri Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers only pay taxes in the state where they live, not the state where they work. Michigan currently has no reciprocal agreements with any other states.
Paid Sick Leave (PSL)
The state of Missouri doesn’t require employers to collect tax for paid sick leave, nor does the state have a program providing paid sick leave to employees.
Local Taxes
In addition to the state-wide taxes mentioned above, both Kansas City and St. Louis have a 1% earnings tax for all residents and any nonresidents who work within their city limits.
Missouri Employer Registration
In Missouri the Department of Revenue and Department of Labor’s Division of Employment Security share responsibilities for withholding tax topics and unemployment tax topics. Contact either agency for help with your state-based employer registration, including best practices, account numbers, and unemployment information.
|
Registration Details |
Department of Revenue |
Division of Employment Security |
|
Phone |
(573) 751-5860 | (573) 751-3340 |
|
Online Registration |
https://dor.mo.gov/register-business/ | |
|
Registration Form |
https://dor.mo.gov/forms/2643.pdf | https://labor.mo.gov/media/28186/download |
|
Registration Instructions |
Online and paper registration options are available. Account numbers are issued in 10 days via the online process or in 3 weeks via mail. Separate account numbers for each tax type will be issued under the combined registration. |
Online and paper registration options are available. Account numbers are issued in 2-3 weeks regardless of which process is used. Separate account numbers for each tax type will be issued under the combined registration. |
|
Employer Self-Service Login |
https://mytax.mo.gov/rptp/portal/home/ | https://uinteract.labor.mo.gov/benefits/home.do |
|
Registration Details |
Department of Revenue |
Division of Employment Security |
|
Phone |
(573) 751-5860 | (573) 751-3340 |
|
Online Registration |
https://dor.mo.gov/register-business/ | |
|
Registration Form |
https://dor.mo.gov/forms/2643.pdf | https://labor.mo.gov/media/28186/download |
|
Registration Instructions |
Online and paper registration options are available. Account numbers are issued in 10 days via the online process or in 3 weeks via mail. Separate account numbers for each tax type will be issued under the combined registration. |
Online and paper registration options are available. Account numbers are issued in 2-3 weeks regardless of which process is used. Separate account numbers for each tax type will be issued under the combined registration. |
|
Employer Self-Service Login |
https://mytax.mo.gov/rptp/portal/home/ | https://uinteract.labor.mo.gov/benefits/home.do |
Additional Missouri Payroll Tax Resources
- Department of Revenue Business Taxation page
- Department of Revenue Business Registration Checklist
- Department of Labor Employers page
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, Tax Attorney, or Advisor.
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