Payroll Missouri, Unique Aspects of Missouri Payroll Law and Practice4 min read
The Missouri State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:
Department of Revenue
Division of Taxation and Collection
Withholding Tax Section
P.O. Box 3375
Jefferson City, MO 65105-3375
Missouri requires that you use Missouri form “MO-W4, Employee’s Withholding Allowance Certificate” instead of a Federal W-4 Form for Missouri State Income Tax Withholding.
Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Missouri cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.
In Missouri supplemental wages are taxed at a 6% flat rate.
You must file your Missouri state W-2s by magnetic media if you are have at least 250 employees and are required to file your federal W-2s by magnetic media.
The Missouri State Unemployment Insurance Agency is:
Division of Employment Security
Unemployment Insurance Department
421 E. Dunklin St., P.O. Box 59
Jefferson City, MO 65104-0059
The State of Missouri taxable wage base for unemployment purposes is wages up to $8000.00.
Missouri requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.
Unemployment records must be retained in Missouri for a minimum period of three years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The Missouri State Agency charged with enforcing the state wage and hour laws is:
Department of Labor and Industrial Relations
Division of Labor Standards
P.O. Box 449
3315 West Truman Blvd.
Jefferson City, MO 65102-0449
The minimum wage in Missouri is $5.15 per hour.
The general provision in Missouri concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.
Missouri State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:
- Employee’s name
- Employee’s address
- Employee’s social security number
- Employer’s name
- Employers address
- Employer’s Federal Employer Identification Number (EIN)
This information must be reported within 20 days of the hiring or rehiring.
The information can be sent as a W4 or equivalent by mail, fax or electronically.
There is a $25 penalty for a late report and $350 for conspiracy in Missouri.
The Missouri new hire-reporting agency can be reached at 800-585-9234 or 800-859-7999 or on the web at http://www.dss.mo.gov/
Missouri does allow compulsory direct deposit but the employee’s choice of financial institution must meet federal Regulation E regarding choice of financial institutions.
Missouri requires the following information on an employee’s pay stub:
- Gross and Net Earnings
- Straight time and overtime pay
- Hours worked
- Itemized deductions
Missouri requires that employee be paid no less often than semimonthly; every 15 days for manufacturers; monthly for FLSA-exempts.
Missouri requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed sixteen days after pay period; five days for manufacturers.
Missouri payroll law requires that involuntarily terminated employees must be paid their final pay on the day of discharge or within 7 days if employee requests it by mail.
There is no provision in Missouri law concerning paying deceased employees.
Escheat laws in Missouri require that unclaimed wages be paid over to the state after five years.
The employer is further required in Missouri to keep a record of the wages abandoned and turned over to the state for a period of 5 years.
Missouri payroll law mandates no more than 50% of minimum wage may be used as a tip credit.
In the Missouri payroll law there is no provision covering required rest or meal periods.
There is no provision in Missouri law concerning record retention of wage and hour records therefore it is probably wise to follow FLSA guidelines.
Missouri statute requires that wage and hour records be kept for a period of not less than three years. These records will normally consist of at least the information required under FLSA.
The Missouri agency charged with enforcing Child Support Orders and laws is:
Division of Child Support Enforcement
Department of Social Services
P.O. Box 2320
227 Metro Dr.
Jefferson City, MO 65102-2320
Missouri has the following provisions for child support deductions:
- When to start Withholding? 2 weeks after mailing.
- When to send Payment? Within 7 days of Payday.
- When to send Termination Notice? “Promptly”
- Maximum Administrative Fee? $6 per month.
- Withholding Limits? Federal Rules under CCPA.
Please note that this article is not updated for changes that can and will happen from time to time.