Employer Withholding Tax

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FEDERAL TAX REFORM BILL

As a result of the federal tax reform bill signed into law on December 22, 2017 the Department has adjusted the Missouri withholding calculations based on information provided by the Internal Revenue Service (IRS). The Missouri Employer’s Guide,(Form 4282), withholding tax tables, withholding tax calculator and MO W-4 have been updated.

Employees should be encouraged to review their Missouri withholdings to ensure the appropriate amount is withheld
for 2018. In the event the IRS makes any additional changes that affect these calculations, the Missouri Employer’s Guide(Form 4282) will be updated.

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(Section 143.191, RSMo) Withholding is the tax that an employer deducts and withholds from employees’ wages every pay period.  The withholding is based on the employee’s wages during that pay period and number of dependents. When the employee calculates his income taxes for the year, the amount of taxes withheld helps determine whether a refund is issued to the taxpayer (more was withheld than necessary) or whether the taxpayer owes more in tax (less tax was withheld than necessary).

The information and links below are helpful to businesses that must withhold taxes for their employees.

Employer’s Tax Guide (Contents of the Tax Guide are as follows)

  • Nonresident Individual Partners and Shareholders
  • Transient Employers
  • Nonresident Subject to Withholding
  • Resident Working in Another State
  • Voluntary Withholding
  • Supplemental Wage Payments
  • Lump Sum Distributions
  • Filing Frequency Requirements
  • Under or Over Reporting of Withholding Tax
  • Employer Compensation Deduction
  • Credit Programs
  • Delinquent Returns and Payments
  • Failure to Pay Taxes Withheld
  • Personal Liability
  • Statements for Employees (W-2 or 1099R)
  • Final Reporting
  • Record Keeping Requirements
  • Withholding Tables
  • W-2 Reporting and Filing Requirements