Missouri Payroll, Unique Aspects of Missouri Payroll Law and Practice

July 21, 2021 by No Comments

The Missouri State Agency that oversees the collection and reporting of state income taxes deducted from payroll checks is:

revenue Department

Tax and Collection Division

Withholding Tax Section

P.O. Box 3375

Jefferson City, MO 65105-3375

(573) 751-5752

http://www.dor.mo.gov/

Missouri requires that you use the Missouri form “MO-W4, Employee’s Withholding Allowance Certificate” instead of a federal form W-4 for Missouri state income tax withholding.

Not all states allow salary reductions made under Section 125 or 401 (k) cafeteria plans to be treated the same way the IRS code allows. In Missouri, cafeteria plans are not taxed for income tax calculation; not taxable for unemployment insurance purposes. 401 (k) plan deferrals are not subject to income tax; taxable for unemployment purposes.

In Missouri, supplemental wages are taxed at a flat rate of 6%.

You must file your Missouri State W-2s by magnetic means if you have at least 250 employees and you must file your Federal W-2s by magnetic means.

The Missouri State Unemployment Insurance Agency is:

Occupational Safety Division

Unemployment Insurance Department

421 E. Dunklin St., PO Box 59

Jefferson City, MO 65104-0059

(573) 751-3215

[http://www.dolir.mo.gov/ls/wagehour/]

The state of Missouri taxable wage base for unemployment purposes is wages up to $ 8000.00.

Missouri requires magnetic media to report quarterly wage reports if the employer has at least 250 employees who are reporting that quarter.

Unemployment records must be kept in Missouri for a minimum period of three years. This information generally includes: name; Social Security number; hiring, rehiring and termination dates; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Missouri state agency charged with enforcing state wage and hour laws is:

Department of Labor and Industrial Relations

Labor Standards Division

P.O. Box 449

3315 West Truman Blvd.

Jefferson City, MO 65102-0449

(573) 751-3403

[http://www.dolir.mo.gov/ls/wagehour/]

The minimum wage in Missouri is $ 5.15 per hour.

The general provision in Missouri for overtime pay at an employer not covered by FLSA is one and a half times the regular rate after 40 hours per week.

The state of Missouri new hire reporting requirements are that each employer must report every new hire and rehire. The employer must report the elements required by the federal government of:

  • Name of the employee
  • Employee address
  • Employee’s Social Security Number
  • Name of the employee
  • Employee address
  • Employer’s Federal Employer Identification Number (EIN)

This information must be reported within 20 days after hiring or rehiring.

Information can be submitted as W4 or equivalent by mail, fax, or electronically.

There is a fine of $ 25 for a late report and $ 350 for conspiracy in Missouri.

You can contact the Missouri New Hire Reporting Agency at 800-585-9234 or 800-859-7999 or on the web at http://www.dss.mo.gov/

Missouri allows mandatory direct deposit, but the employee’s choice of financial institution must comply with federal Regulation E regarding choice of financial institutions.

Missouri requires the following information on an employee’s pay stub:

  • Gross and net profit
  • Regular time and overtime pay
  • Hours worked
  • Deductions per item
  • Total deductions
  • Missouri requires the employee to be paid no less than biweekly; every 15 days for manufacturers; monthly for FLSA exempt.

    Missouri requires that the lapse between the end of the pay period and the payment of wages to the employee not exceed sixteen days after the pay period; five days for manufacturers.

    Missouri payroll law requires that involuntarily laid off employees be paid their final pay on the day of discharge or within 7 days if the employee requests it by mail.

    There is no provision in Missouri law regarding the payment of deceased employees.

    Withholding laws in Missouri require that unclaimed wages be paid to the state after five years.

    In addition, the employer is required in Missouri to keep a record of wages abandoned and turned over to the state for a period of 5 years.

    Missouri payroll law requires that no more than 50% of the minimum wage can be used as a tip credit.

    There is no provision in Missouri payroll law that covers required meal or rest periods.

    There is no provision in Missouri law regarding the retention of wage and hour records, so it is probably prudent to follow the 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 by the FLSA.

    The Missouri agency in charge of enforcing child support laws and orders is:

    Child Support Enforcement Division

    Department of Social Services

    P.O. Box 2320

    227 Metro Dr.

    Jefferson City, MO 65102-2320

    (573) 751-4301

    http://www.dss.mo.gov/

    Missouri has the following provisions for child support deductions:

    • When to start withholding? 2 weeks after shipment.
    • When to send the payment? Within 7 days after the payday.
    • When to send the Notice of Termination? “Promptly”
    • Maximum administrative fee? $ 6 per month.
    • Retention limits? Federal rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.

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