Missouri Withholding laws & HR compliance analysis

Missouri Withholding: What you need to know

All Missouri employers are required to deduct state income tax from wages of both resident and nonresident employees during each payroll period. Withholding may be based on wage bracket withholding tables or the percentage method provided by the Department of Revenue (DOR).

For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”. This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements. Download Now

Withholding applies to wages of residents, regardless of where earned and to wages of nonresidents for income earned in Missouri. The term “wages” for Missouri income tax withholding purposes has the same meaning as it has for federal withholding. Wages include all pay given to an employee for services performed. The pay may be in cash or in other forms. Wages include salaries, vacation allowances, bonuses, and commissions, regardless of how measured or paid.

Generally, employees who are subject to federal income tax withholding are also subject to state income tax withholding. Agricultural, domestic, and most other employees who are exempt from federal withholding are also exempt from state withholding. Changes to the Internal Revenue Code are automatically adopted by Missouri. Thus, compensation that is subject to federal withholding is also subject to state withholding.

Employees

Each employee must file a Form MO W-4, Employee's Withholding Exemption Certificate, to indicate exemptions claimed. If no form is provided, the employer must withhold based on zero exemptions (MO Rev. Stat. Sec. 143.191).

Nonresident employees. If a nonresident employee performs all services within Missouri, taxes must be withheld from all wages paid to him or her as in the case of a resident. If services are performed partly within and partly outside of the state, only wages paid for services performed within ...

More on this topic:

State Income Tax

Wages Subject to Withholding

Reporting Requirements

State Requirements

Missouri Withholding Resources

Type	Title
Forms	Withholding Certificate for Pension or Annuity Payments (W-4P Form)
Handouts	Basic Tax Guidelines for Employees (Handout)

See all Withholding Resources