Missouri Payroll, Unique Aspects of Missouri Payroll Law and Practice

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

revenue Department

Taxation and Collection Division

Withholding Tax Section

post office box 3375

City of Jefferson, MO 65105-3375

(573) 751-5752


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 in the same manner as the IRS code allows. In Missouri, cafeteria plans are not taxable for income tax purposes; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not subject to income taxes; taxable for unemployment purposes.

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

You must file your Missouri state W-2 forms magnetically if you have at least 250 employees and you must file your federal W-2 forms magnetically.

The Missouri State Unemployment Insurance Agency is:

Employment Security Division

Department of Unemployment Insurance

421 E. Dunklin St., PO Box 59

City of Jefferson, MO 65104-0059

(573) 751-3215


The state of Missouri taxable wage base for unemployment purposes is wages up to $8,000.00.

Missouri requires magnetic media reporting of 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 of three years. This information generally includes: name; Social Security number; hire, retirement and termination dates; wages per period; payroll periods and payment dates; termination date and circumstances.

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

Department of Labor and Industrial Relations

Labor Standards Division

post office box 449

3315 West Truman Blvd.

City of Jefferson, MO 65102-0449

(573) 751-3403


The minimum wage in Missouri is $5.15 per hour.

The general provision in Missouri regarding overtime pay at a non-FLSA covered employer is one and one-half times the regular rate after a 40-hour week.

The state of Missouri’s new hire reporting requirements are that every 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 Social Security Number
  • Name of the employee
  • Employee Address
  • Employer Federal Employer Identification Number (EIN)

This information must be reported within 20 days of hire or rehire.

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

There is a $25 fine for late reporting 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 earnings
  • Regular time and overtime pay
  • Hours worked
  • Deductions per item
  • Total deductions
  • Missouri requires that the employee be paid no less frequently than twice a month; every 15 days for manufacturers; monthly for those exempt from FLSA.

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

    Missouri payroll law requires involuntarily terminated employees to receive their final pay on the day of termination or within 7 days if the employee requests it by mail.

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

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

    In Missouri, in addition, the employer is required 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 may 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 wise to follow the FLSA guidelines.

    Missouri statute requires that wage and hour records be maintained for a period of not less than three years. These records will normally consist of at least the information required under the FLSA.

    The Missouri agency charged with enforcing child support laws and orders is:

    Division of Child Support Enforcement

    Department of Social Services

    post office box 2320

    227 meter dr.

    City of Jefferson, MO 65102-2320

    (573) 751-4301


    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 of payment day.
    • When to send a termination notice? “Promptly”
    • Maximum administrative fee? $6 per month.
    • Retention limits? Federal Rules under CCPA.

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

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