Frequently Asked Questions - Withholding Tax
General Information
- Do I still have to file a return even if I have no withholding tax to report?
- I don't have a preprinted form to report my withholding tax. What should I do?
- I withheld Missouri taxes for one of my employees and I should have withheld taxes for another state. What should I do?
- What is the timely compensation deduction?
- I am a quarter-monthly (weekly) filer of withholding tax. How do I make payments and file my return?
- Does Missouri require a copy of Form W-2C?
Voluntary Withholding
- As a pension plan administrator, am I required to withhold Missouri taxes?
- I am retired from civil service and I want to have Missouri taxes withheld. What do I do?
- I am retired from the military and want to have Missouri taxes withheld. What do I do?
Magnetic Media - W-2 and 1099-R Reporting
- Will the State of Missouri accept the exact requirements specified in Social Security Administration (SSA) publication "Magnetic Media Reporting and Electronic Filing" (MMREF-1)?
- What type of media does Missouri accept for W-2 data files?
- Is magnetic media reporting of W-2 data voluntary or mandatory?
- Does the State of Missouri have specific requirements regarding the External Label?
- What are the acceptable recording densities for tape reels?
- What is the due date for filing magnetic media W-2 information?
- Does Missouri grant extensions for filing the W-2 data by magnetic media reporting?
- Does Missouri accept the MSDOS or EBCDIC file?
- Will Missouri accept password protected files? If so, how do I provide the password?
- Does Missouri require a test tape?
- Can I report more than one company on one magnetic tape, cartridge or diskette?
- Does Missouri accept filing of W-2 information through electronic data interchange?
- Do I need to include any paper work with my W-2 magnetic media?
- Can the fourth quarter or 12th month return and payment be sent with the magnetic media reporting?
- Will the State of Missouri accept the exact requirements specified in IRS Publication 1220, Specifications for Filing 1099 Series Magnetically for 1099R reporting?
- Will the State of Missouri accept the requirements specified in IRS Publication 1220, Specifications for Filing 1099 series Magnetically with some modifications to the layout?
- Do I need to include any paperwork with my magnetic media or paper 1099-R's?
Information at Source Reporting Requirements
- What are Missouri's requirements for the reporting of miscellaneous income?
- What form of statement is used to report miscellaneous income?
- What is the due date of Form 99 MISC?
- Where do I send Form 99 MISC?
- Is there a penalty for failure to file these statements?
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.)
I don't have a preprinted form to report my withholding tax. What should I do?
You can call 1-800-877-6881 to request a blank form, form-by-fax at (573) 751-4800 or visit our withholding tax forms page to download a form.
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 amended returns (Forms MO-941X) 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.
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 |
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.
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.
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.
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.
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.
Magnetic Media
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.
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:
- ½" magnetic tape
- 3480/3480E cartridges
- 3490/3490E cartridges
- 3 ½" diskettes
- Compact Disc
We will not accept compressed data files.
Is magnetic media reporting of W-2 data voluntary or mandatory?
It is mandatory for employers with 250 or more employees.
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 tape, cartridge or diskette. 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.
What are the acceptable recording densities for tape reels?
6,250 characters per inch.
What is the due date for filing magnetic media W-2 information?
The due date for 2007 information is February 29, 2008.
Does Missouri grant extensions for filing the W-2 data by magnetic media reporting?
Yes. Extension requests must be filed by the due date of the W-2 information. Email the request to withhold@dor.mo.gov or mail the request to the Division of Taxation and Collection, P. O. Box 3330, Jefferson City, MO 65105-3330.
Does Missouri accept the MSDOS or EBCDIC file?
Missouri accepts the EBCDIC (Extended Binary Coded Decimal Interchange Code) only.
Will Missouri accept password protected files? If so, how do I provide the password?
Yes. The password can be emailed to withholding@dor.mo.gov prior to your file being mailed. The subject of your email will be "Magnetic Media 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.
Does Missouri require a test tape?
No.
Can I report more than one company on one magnetic tape, cartridge or diskette?
Yes.You may report more than one company on one magnetic tape, cartridge or diskette.
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.
Do I need to include any paper work with my W-2 magnetic media?
Yes. You must send Form MO W-3 (Transmittal of Wage and Tax Statements) along with the tape, cartridge or diskette.
Can the fourth quarter or 12th month return and payment be sent with the magnetic media reporting?
No. The fourth quarter or 12th month return and payment must be sent to the address indicated on the Form MO-941.
Will the State of Missouri accept the exact requirements specified in IRS Publication 1220, Specifications for Filing 1099 Series Magnetically for 1099 R reporting?
Yes.
Will the State of Missouri accept the requirements specified in IRS Publication 1220, Specifications for Filing 1099 series Magnetically with some modifications to the layout.
No modifications.
Do I need to include any paperwork with my magnetic media or paper 1099-Rs?
If state taxes were withheld, then yes, the magnetic media 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 magnetic media or Federal Form 1096 must accompany the paper 1099-Rs.
Information at Source Reporting Requirements
What are Missouri's requirements for the reporting of miscellaneous income?
All individuals, businesses and corporations who are required to make a federal at source information report must file an annual statement of payments made to non-residents, regardless of the manner or form in which payment is made of:
- payments made to a nonresident of rents, royalties, commissions, prizes, awards or other forms of compensation;
- other forms of fixed or determinable gains, profits; or
- income with an annual combined worth of one thousand two hundred dollars ($1,200) or more from a Missouri source, which is not subject to withholding and not a part of an information report of S corporations or partnerships.
Missouri does participate in the combined federal/state reporting of information program.
Annual statements will not be required of any individual, business or corporation making those payments to Missouri residents.
What form of statement is used to report miscellaneous income?
Use Missouri Form 99 MISC, which is comparable to federal Form 1099 MISC. Copy 1 must be filed with Form 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.
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.
Where do I send Form 99 MISC?
To the Missouri Department of Revenue, Customer Services Division, P.O. Box 2200, Jefferson City, MO. 65105-2200.
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).
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