Withholding Tax

General Information

Correcting My Withholding Tax Filing

Voluntary Withholding

Paperless - W-2 and 1099-R Reporting

Miscellaneous Income Reporting Requirements


General Information

Do I still have to file a return even if I have no withholding tax to report?

Yes. As long as your withholding tax account is open, you need to file a return showing zero tax was withheld; otherwise you will receive a non-filer notice. If you no longer have employees and want to close your withholding tax account, you should file an Employer's Withholding Tax Final Report, Form MO-941F. (Form MO-941F is included in your withholding tax voucher book.)

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I don't have a preprinted form to report my withholding tax. What should I do?

You can call (800) 877-6881 to request a blank form or visit our withholding tax forms page to download a form.

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I withheld Missouri taxes for one of my employees and I should have withheld taxes for another state. What should I do?

Reimburse your employee for the taxes withheld in error and file corrected returns (Form MO-941C) for each month affected. When your amended returns are processed, you will receive overpayment notices advising to either use the credit on the next return filed or request a refund.

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What is the timely compensation deduction?

Employers who are not government agencies or political subdivisions may take a deduction if their withholding tax return (Form MO-941) is timely filed and timely paid. The timely compensation deduction is computed as follows:

AMOUNT OF COMPENSATION YEAR-TO-DATE TAX WITHHELD
2 Percent 0 to $5,000
1 Percent $5,001 to $10,000
½ Percent in Excess of $10,000

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I am a quarter-monthly (weekly) filer of withholding tax. How do I make payments and file my return?

The Director of Revenue has mandated that effective January 1, 2004, all employers subject to the requirement of quarter-monthly filing must file and pay withholding tax electronically. For more information visit our "File and Pay Business Taxes Online" page.

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Does Missouri Require a copy of Form W-2C?

Missouri only requires a copy of Form W-2C if there is a change in Missouri withholding. Send a copy of the W-2Cs to the Missouri Department of Revenue, PO Box 3330, Jefferson City, MO 65105-3330.

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What are the due dates for withholding tax returns (MO-941)?

Click here for a current list of due dates for all filing frequencies.

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My employer is classifying me as an independent contractor instead of an employee. Is this legal? Where can I report my concerns?

Employee misclassification occurs when a worker is not classified as an employee, but should be. Some forms of misclassification occur when workers are not reported at all, such as when working off-the-books or being paid under the table in cash. Misclassification also occurs when workers are classified incorrectly as independent contractors. Misclassification of workers is not only wrong, itís against the law.

For more information and if you wish to report an employer for misclassifying workers, please visit the Missouri Division of Employment Security website at www.labor.mo.gov/offthebooks.


Correcting My Withholding Tax Filing

How do I correct an overpayment or underpayment on my employer withholding tax return?

Complete the Employer’s Withholding Tax Return Correction (Form MO-941C). 

If you over-reported your Missouri withholding tax on your original MO-941 return, include a copy of your payroll ledger(s) and/or Form W-2C(s) for the periods being adjusted with your MO-941C. 

If you under-reported your Missouri withholding tax on your original MO-941 return, attach a check to the MO-941C and submit it to the Missouri Department of Revenue, P. O. Box 999, Jefferson City, MO 65105-3375.

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What documentation is needed if I'm claiming an overpayment on Form MO-941-C?

If you are submitting Form MO-941-C because tax was withheld to Missouri but should have been withheld to another state, attach copies of Form W-2C to your filing. In addition to the Employer's Withholding Tax Return Correction (Form MO-941C) one of the following will be required:

If the corrected period(s) are for the current year due to a calculation error for Missouri, you will need to provide a brief explanation for the overpaid period(s) and copies of the payroll ledger(s) showing the actual tax withhold and when the overpaid amount was reported.

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If an overpayment was made and caught before W-2(s) were issued, what documentation is needed?

If a correction to the withholding tax was discovered and corrected before W-2(s) were issued; please provide the Employer’s Withholding Tax Return Correction (Form MO-941C) along with copies of the payroll ledger(s) showing the actual tax withheld and where the overpaid amount occurred for the period(s) being corrected.

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Is there a way to check for credits/overpayments on my account?

Credits/overpayments can be viewed at https://dors.mo.gov/tax/overunder/login.jsp.  This link also provides information on requesting a refund of any available credits.

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Will I have to pay the interest and penalties?

If your return and payment is not postmarked by the due date you will be subject to penalties and accruing interest.  Penalties and interest can be calculated using the Additions to Tax and Interest Calculator.

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I electronically filed one of my payments to an incorrect month. How do I correct this?

Submit an email to [email protected] and provide your Missouri Tax ID number, the specific tax period in question, the payment amount and electronic confirmation number.  Your email should clearly state which tax period this payment should be transferred to.

In the event that a payment must be transferred, an employer that would normally reconcile their quarter-monthly return using the Collector Solutions website will be required to use the Missouri Withholding Tax MO-941 Online Reporting website to file their reconciliation return. Transferred payments will not be reflected on the Collector Solutions website.

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How can I get the return and payment information for the period(s) I am correcting?

A written request can be submitted to the Missouri Department of Revenue at P O Box 3375, Jefferson City, MO 65105-3375. A listed officer can also request this information via email at [email protected].

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If I failed to take the timely compensation deduction on my original Employer's Withholding Tax Return (Form MO-941), how do I correct my filing?

Complete Employer’s Withholding Tax Return Correction (Form MO-941C) to indicate how your return should have been completed and include the timely compensation deduction.

In the reason for change field, specify that you failed to take the timely compensation discount.

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Voluntary Withholding

As a pension plan administrator, am I required to withhold Missouri taxes?

Withholding is voluntary for the recipient. If the recipient requests Missouri taxes be withheld, the plan administrator is required to withhold.

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I am retired from civil service and I want to have Missouri taxes withheld. What do I do?

Contact the Office of Personnel Management at (202) 606-0500.

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I am retired from the military and want to have Missouri taxes withheld. What do I do?

Obtain and complete Form MO W-4P and send it to your pension plan administrator.

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Paperless Reporting - Compact Disc or Flash Drive

Will the State of Missouri accept the exact requirements specified in Social Security Administration (SSA) publication "Specifications for Filing Forms W-2 Electronically" (EFW2)?

Yes. All Missouri employers must include both the RE and RS records. The RS record must contain the eight digit Missouri Employer Withholding Tax Number in location 248-267. Please left justify and fill with blanks.

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What type of media does Missouri accept for W-2 data files?

These are the types of media Missouri accepts for W-2 data files:

We will not accept compressed data files.

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Is paperless reporting of W-2 data voluntary or mandatory?

It is mandatory for employers with 250 or more employees.

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Does the State of Missouri have specific requirements regarding the External Label?

Yes. An external label, containing the tax year, the Missouri Tax ID number and the business name and return address must be affixed to the compact disc or flash drive. If you are submitting more than one (1), please put a label on each and number them according to the order they should be read.

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What is the due date for filing W-2 information by compact disc or flash drive?

The due date for 2013 information is February 28, 2014.

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Does Missouri grant extensions for filing the W-2 data by compact disc or flash drive?

Yes. Extension requests must be filed by the due date of the W-2 information. Email the request to [email protected] or mail the request to the Missouri Department of Revenue, P. O. Box 3330, Jefferson City, MO 65105-3330.

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Does Missouri accept the MSDOS or EBCDIC file?

Missouri accepts the EBCDIC (Extended Binary Coded Decimal Interchange Code) only.

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Will Missouri accept password protected files? If so, how do I provide the password?

Yes. The password can be emailed to [email protected] prior to your file being mailed. The subject of your email will be "Compact Disc or Flash Drive Password". Your email will need to contain all information displayed on the label of your magnetic media file. Your file should be labeled as "Password Protected" and indicate the date the password was emailed to the department.

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Can I report more than one company on one compact disc or flash drive?

Yes. You may report more than one company on one compact disc or flash drive.

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Does Missouri accept filing of W-2 information through electronic data interchange?

No, Missouri does not accept the filing of W-2 information through electronic data interchange.

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Do I need to include any paper work with my W-2 compact disc or flash drive?

Yes. You must send Form MO W-3 (Transmittal of Tax Statements) along with the compact disc or flash drive.

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Can the fourth quarter or 12th month return and payment be sent with the compact disc or flash drive reporting?

No. The fourth quarter or 12th month return and payment must be sent to the address indicated on the Form MO-941.

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Will the State of Missouri accept the exact requirements specified in IRS Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W2-G Electronically for 1099 R reporting?

Yes.

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Will the State of Missouri accept the requirements specified in IRS Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W2-G Electronically with some modifications to the layout.

No modifications.

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Do I need to include any paperwork with my compact disc, flash drive or paper 1099-Rs?

If state taxes were withheld, then yes, the compact disc, flash drive or paper 1099-Rs must be accompanied by the Transmittal of Wage and Tax Statements (Form MO W-3).If state taxes were not withheld, a copy of Federal Form 4804 must accompany the compact disc or flash drive or Federal Form 1096 must accompany the paper 1099-Rs.

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Miscellaneous Income Reporting Requirements

What are Missouri's requirements for the reporting of miscellaneous income?

All individuals, businesses and corporations who are required to file a federal 1099 information report must file with the Missouri Department of Revenue an annual statement of payments of any income of $1,200 or more from a Missouri source except:

Annual statements ARE required of any individual, business or corporation making those payments to Missouri residents and nonresidents.

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Does Missouri participate in the Combined Federal/State Filing (CF/SF) Program with the Internal Revenue Service?

Missouri does participate in the Combined Federal/State Filing (CF/SF) Program which allows you to only file miscellaneous income to the Internal Revenue Service. The Internal Revenue Service will provide this information to the Missouri Department of Revenue. This is a program which you must receive written approval for participation by the Internal Revenue Service. Once you receive approval, submit a copy of the written approval to the Missouri Department of Revenue, Taxation Division, P.O. Box 3375. Jefferson City, MO 65105-3375, fax (573)522-6816 or e-mail to [email protected]. If you do not participate in the program, you must file this information separately with the Missouri Department of Revenue. The information returns that may be filed under the Combined Federal/State Filing Program are:

For additional information regarding this program, please review the Internal Revenue Service's Tax Topic 804.

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What form of statement is used to report miscellaneous income?

Use Missouri Form MO-99 MISC, which is comparable to federal Form 1099 MISC. Copy 1 must be filed with Form MO-96, Annual Summary and Transmittal of Information Return, to the Department of Revenue. Copy 2 must be provided to the recipient. Copy 3 is the payer's copy and is optional. A copy of federal Form 1099 MISC may be used as a substitute for Missouri Form 99 MISC, if copies are clearly marked: Copy 1 Missouri copy and Copy 2 information supplied to the Missouri Department of Revenue.

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What is the due date of Form 99 MISC?

Information statements shall be filed with the Department of Revenue on or before February 28 of each year for the previous calendar year, except where extension of time to file has been approved by the director or by the Internal Revenue Service, and a copy provided to recipients by January 31.

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Where do I send Form 99 MISC?

To the Missouri Department of Revenue, P.O. Box 2200, Jefferson City, MO. 65105-2200.

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Is there a penalty for failure to file these statements?

In each case of failure to file a copy of the statement required, (determined with regard to any extension of time to file) unless it is shown that the failure is due to reasonable cause and not willful neglect, there shall be paid upon notice and demand by the director of revenue, and in the same manner as tax, by the person failing to file, a penalty of two dollars ($2.00) for each statement not so filed but the total amount imposed on the delinquent person for all failures during any calendar year shall not exceed one thousand dollars ($1,000). Any employer who intentionally, on five or more occasions, fails to submit the statement required by this section shall also be fined not more than two hundred dollars ($200) for each time the employer fails to submit the information on or after the fifth occurrence.

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Do I need to report miscellaneous income for resident employees?

Every employer doing business in Missouri who employs five or more employees is required to report miscellaneous forms to the Department of Revenue.

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