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Summary of differences between federal and state regulations
Income tax withholding
An employer is any person, firm, corporation, association, fiduciary of any kind, or other type of organization for whom an individual performs services as an employee, unless the person or organization for whom the individual performs service does not have control of the payment of compensation for the service (Section 143.191, RSMo). The term employer means the person, including all government agencies, who controls the payment of the compensation.
An employer required to withhold Missouri income tax is personally liable for the tax. Any amount of tax actually deducted and withheld by an employer is a special fund in trust for the Director of Revenue (Section 143.241, RSMo). An employee does not have a right of action against the employer with respect to any money deducted and withheld from his/her wages if it is paid to the Director of Revenue in good faith compliance with the Missouri income tax law.
The term “employee” for Missouri withholding purposes has the same meaning as it has for federal withholding (see Circular E, Employer’s Tax Guide, published by the Internal Revenue Service). This definition is the same for Missouri residents and nonresidents.
The term “wages” for Missouri income tax withholding purposes has the same meaning as it has for federal withholding (see Circular E, Employer’s Tax Guide, published by the Internal Revenue Service). 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.
Unemployment taxes
All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.
Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.
Wages subject to unemployment tax in this state equal $8,000.
Minimum and maximum rates in this state are 0.0 and 6.0 %. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.
State
Contacts
Income tax withholding
Department of Revenue
Unemployment taxes
Division of Employment Security
Regulations
Income tax withholding
12 CSR 10-2.015 Employer’s withholding of tax
Unemployment taxes
Title 8, Division 10, Division of Unemployment Security