Payroll Missouri, Unique Aspects of Missouri Payroll Law and Practice

The Missouri State Agency that oversees the$350 for conspiracy in Missouri.The Missouri new
collection and reporting of State income taxeshire-reporting agency can be reached at
deducted from payroll checks is:Department of800-585-9234 or 800-859-7999 or on the web at
Revenuedoes allow compulsory direct deposit but the
Division of Taxation and Collectionemployee's choice of financial institution must
Withholding Tax Sectionmeet federal Regulation E regarding choice of
P.O. Box 3375financial institutions.Missouri requires the following
Jefferson City, MO 65105-3375information on an employee's pay stub:Gross and
(573) 751-5752Net Earnings
requires that you use Missouri form "MO-W4,Straight time and overtime pay
Employee's Withholding Allowance Certificate"Hours worked
instead of a Federal W-4 Form for Missouri StateItemized deductions
Income Tax Withholding.Not all states allow salaryTotal deductionsMissouri requires that employee
reductions made under Section 125 cafeteria plansbe paid no less often than semimonthly; every 15
or 401(k) to be treated in the same manner asdays for manufacturers; monthly for
the IRS code allows. In Missouri cafeteria plans areFLSA-exempts.Missouri requires that the lag time
not taxable for income tax calculation; not taxablebetween the end of the pay period and the
for unemployment insurance purposes. 401(k) planpayment of wages to the employee not exceed
deferrals are not taxable for income taxes;sixteen days after pay period; five days for
taxable for unemployment purposes.In Missourimanufacturers.Missouri payroll law requires that
supplemental wages are taxed at a 6% flatinvoluntarily terminated employees must be paid
rate.You must file your Missouri state W-2s bytheir final pay on the day of discharge or within 7
magnetic media if you are have at least 250days if employee requests it by mail.There is no
employees and are required to file your federalprovision in Missouri law concerning paying
W-2s by magnetic media.The Missouri Statedeceased employees.Escheat laws in Missouri
Unemployment Insurance Agency is:Division ofrequire that unclaimed wages be paid over to the
Employment Securitystate after five years.The employer is further
Unemployment Insurance Departmentrequired in Missouri to keep a record of the
421 E. Dunklin St., P.O. Box 59wages abandoned and turned over to the state
Jefferson City, MO 65104-0059for a period of 5 years.Missouri payroll law
(573) 751-3215mandates no more than 50% of minimum wage
State of Missouri taxable wage base formay be used as a tip credit.In the Missouri payroll
unemployment purposes is wages up tolaw there is no provision covering required rest or
$8000.00.Missouri requires Magnetic mediameal periods.There is no provision in Missouri law
reporting of quarterly wage reporting if theconcerning record retention of wage and hour
employer has at least 250 employees that theyrecords therefore it is probably wise to follow
are reporting that quarter.Unemployment recordsFLSA guidelines.Missouri statute requires that
must be retained in Missouri for a minimum periodwage and hour records be kept for a period of
of three years. This information generally includes:not less than three years. These records will
name; social security number; dates of hire, rehirenormally consist of at least the information
and termination; wages by period; payroll payrequired under FLSA.The Missouri agency charged
periods and pay dates; date and circumstances ofwith enforcing Child Support Orders and laws
termination.The Missouri State Agency chargedis:Division of Child Support Enforcement
with enforcing the state wage and hour lawsDepartment of Social Services
is:Department of Labor and Industrial RelationsP.O. Box 2320
Division of Labor Standards227 Metro Dr.
P.O. Box 449Jefferson City, MO 65102-2320
3315 West Truman Blvd.(573) 751-4301
Jefferson City, MO 65102-0449has the following provisions for child support
(573) 751-3403deductions:When to start Withholding? 2 weeks
minimum wage in Missouri is $5.15 per hour.Theafter mailing.
general provision in Missouri concerning payingWhen to send Payment? Within 7 days of
overtime in a non-FLSA covered employer is onePayday.
and one half times regular rate after 40-hourWhen to send Termination Notice? "Promptly"
week.Missouri State new hire reportingMaximum Administrative Fee? $6 per month.
requirements are that every employer mustWithholding Limits? Federal Rules under CCPA.
report every new hire and rehire. The employerPlease note that this article is not updated for
must report the federally required elementschanges that can and will happen from time to
of:Employee's nametime.Charles J. Read, CPA has been in the payroll,
Employee's addressaccounting and tax business for 30 years, the last
Employee's social security numberfifteen in private practice. Mr. Read is the author
Employer's nameof "How to Start a New Business".For Professional
Employers addressPayroll services at a Budget Price go to a
Employer's Federal Employer IdentificationPaperless Payroll Company.Go to For a full service
Number (EIN) This information must be reportedpayroll service bureau with CPA's on staff.See an
within 20 days of the hiring or rehiring.excerpt of Mr. Read's interviews from William
The information can be sent as a W4 orShatners "Heartbeat of America" television show
equivalent by mail, fax or electronically.on the websites linked above.
There is a $25 penalty for a late report and