3 min read

Your Ultimate Guide to Missouri Payroll

US Payroll


Gabriele Culot


July 26, 2023

Last Update

June 28, 2024

Table of Contents

Paying unemployment insurance

Withholding personal income tax from your Missouri employee

Paying your Missouri workers’ compensation

Simplify US payroll tax compliance with Deel

Key takeaways
  1. Missouri employers must consider required payroll and tax withholdings to comply with state regulations.
  2. These required payments include unemployment insurance, personal income tax, workers’ compensation, and more.
  3. Many organizations work with Deel’s robust platform and team of experts to remain compliant and streamline state-specific payroll taxes and withholdings.

In the United States of America, employers must navigate various regulations and requirements for payroll withholding. However, these requirements change from one state to another, and it’s important to understand the state-specific details for your areas of operation. 

In Missouri, there are specific regulations for payroll withholdings, and this guide serves as a basic introduction for employers in the state. 

Paying unemployment insurance

Unemployment insurance in Missouri is crucial in providing a safety net for individuals who find themselves unemployed due to unforeseen circumstances. Also known as UI, unemployment insurance is a national program administered by the Missouri Department of Labor and Industrial Relations.

The employer pays unemployment insurance, and payments can be managed through an online portal. For more information on paying unemployment insurance, you can visit the Missouri Department of Labor and Industrial Relations website.

Note: Unemployment insurance is one of the payroll taxes employers are responsible for withholding in Missouri. Other payroll withholding requirements include the likes of Medicare and Social Security. 

Withholding personal income tax from your Missouri employee

Most employers are familiar with federal taxes, such as Medicare and Social Security taxes, which are withheld from an employee’s payroll. Personal income tax, also known as individual income tax or state income tax, is another employer payroll tax to consider.

Personal income tax is deducted from the employee’s wages and withheld by the employer. After making the necessary calculations, the employer is responsible for paying the withheld amount to the state, which can be done through Missouri’s online portal

If you want to learn more about paying personal income tax on behalf of your Missouri employee, you can visit the Missouri Department of Revenue.

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Paying your Missouri workers’ compensation

In Missouri, workers' compensation is a vital program designed to protect both employees and employers in the event of work-related injuries or illnesses. It is a legal requirement for employers to provide workers’ compensation insurance, entitling employees to benefits regardless of who is at fault for the accident. 

In Missouri, employers are only required to pay workers’ compensation coverage when hiring five or more employees in the state.

By providing financial support and medical coverage, workers' compensation in Missouri safeguards employees' well-being and shields employers from potential lawsuits arising from workplace injuries.

Workers’ compensation can be purchased from a qualified commercial carrier, and more information can be found online at the Department of Labor & Industrial Relations. When calculating workers’ compensation, it’s important to verify that your insurance payments are compliant with the state’s regulations for workers’ compensation.

Simplify US payroll tax compliance with Deel

Although this guide offers essential details about payroll taxes in Missouri, it's important to note that payroll compliance and state obligations involve more than what has been discussed. For a smoother and fully compliant experience, businesses can work with Deel.

Deel offers a comprehensive solution for managing US and international payroll, helping to streamline payments, taxes, and compliance for global and dispersed teams. Request a demo today to experience Deel for yourself. 

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

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