Withholding Tax

Yes, an Employer's Withholding Tax Income Return (Form MO-941) is required to be filed even if you have zero withholding to report so long as the account is open with the Department. If a return is not received, Non-Filer Notice(s) will generate. If you no longer have employees or have co-employed individuals with a Professional Employer Organization (PEO) and need to have your account closed, submit one of the following:

Complete the Final Return section on the Employer's Withholding Tax Income Return (Form MO-941).

Submit a letter containing the Missouri Tax Identification Number and effective date of the last payroll.

If you hire employees in the future, contact Business Tax Registration to have your account reactivated at 573-751-5860.

The Department, is no longer printing and mailing these forms on your behalf. Returns can be conveniently filed electronically through our MyTax Missouri Portal. If you are not yet registered for this service, you can file as a guest user. To register you will need your Missouri Tax Identification Number (MOID) and Personal Identification Number (PIN). This service also provides up to date account statuses, as well as easily accessible copies of returns filed through this system. Paper filings can still be completed using forms found online on the Department's website, but may result in a delay in processing time.

The below forms can be found online at /forms/.

The employee will report the withholdings on their annual Missouri individual income tax return to receive credit for the amount withheld.

According to Section 143.781(3), RSMo, if the amount overpaid on the employer withholding tax account was deducted and withheld from the employee by the employer, the department will not refund this overpayment to the employer.

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:

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.

The Department 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.

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

For more information concerning Worker Misclassification, please visit the Missouri Division of Employment Security website at www.labor.mo.gov/offthebooks.

Yes. Any time an employee is performing services for an employer in exchange for wages in Missouri, those wages are subject to Missouri withholding. This applies in the case of “remote work” where an employee is located in Missouri and performs services for the employer on a remote basis. This rule also applies if the service for which the employee is receiving wages is “standing down” (i.e., when the employer instructs the employee not to work but the employee is still being paid).

Yes. If you have employees performing services for wages in Missouri, those wages are subject to Missouri withholding, regardless of where you as the employer are located.

Yes. Whether withholding is required is determined by the location where the employee performs services in exchange for wages. If the wages are for services performed in Missouri, then Missouri withholding is required.

Yes, an employer is required to withhold Missouri tax from all wages paid to an employee in exchange for services the employee performs for the employer in Missouri. In a situation where the employee has performed services in Missouri and some other state or states, the amount of Missouri withholding is calculated using this formula:

The calculation begins by determining the amount that would be withheld if all the wages were subject to Missouri withholding, using the Missouri withholding table. This amount is then multiplied by a percent which is determined by dividing the wages subject to Missouri withholding tax by the total wages reported for federal purposes.

Yes. All income received for services performed by a Missouri resident in another state not having a state income tax is subject to Missouri withholding.

An employer who receives a completed Form MO W-4C, Withholding Affidavit for Missouri Residents, is required to perform withholding from the wages of such employee based on the percentage stated on the Form. For example, if the employee states that all of the employee’s services for the employer are being performed in a state other than Missouri, and that the employer is withholding tax from the employee’s wages for that state, then you, as the employer, are required to withhold in accordance with the Form. Likewise, if the employee states that a percentage of the employee’s services for wages are being performed in Missouri, the employer is required to withhold from that employee’s wages at that percentage using the following formula:

The calculation begins by determining the amount that would be withheld if all the wages were subject to Missouri withholding, using the Missouri withholding table. This amount is then multiplied by a percent which is determined by dividing the wages subject to Missouri withholding tax by the total wages reported for federal purposes.

No. If a non-resident employee performs all of his or her services outside of Missouri, the wages paid to that employee are not subject to Missouri withholding.

If an error was made, complete an Employer's Withholding Tax Income Return (Form MO-941) with the amended box on the top right corner marked for each period to be adjusted. This box should be checked to correct a previously filed return to indicate an increase or decrease in the amount of tax liability.

Overpayment Period(s):
Attach one of the following as proper documentation for verification of changes made:

• Provide a copy of the W-2C(s) if the error was caught after the original W-2 was submitted.
• Provide a copy of the payroll ledger if the error was caught before a W-2 was issued.
• Provide a copy of the original 1099-R and a copy of the corrected 1099-R

To receive a refund of the overpayment: attach the Employer’s Refund Request Form 4854. If no form is attached, overpayment(s) generated will remain as credit(s) on the account. (Please note if an overpayment has been authorized, the overpayment is subject to be used as an offset towards any debt.)

Additional Tax Owed Period(s):

If you under reported your Missouri withholding tax on your original Form MO-941 return, attach a check to the amended Form MO-941 and submit it to the Missouri Department of Revenue, PO Box 999, Jefferson City, MO 65105-3375.
(Please note if the additional tax liability is reported after the period(s) due date, interest and penalty will apply to the under reported portion)

To calculate additions to tax:
If withholding tax is not being paid by the due date – subtract Line 3, if applicable, from Line 1 and multiply the result by 5% for each month late, not to exceed 25% .
If your withholding tax return is not filed by the due date – subtract Line 3, if applicable, from Line 1 and multiply the result by 5% for each month late, not to exceed 25%.

To calculate interest:
Subtract Line 3 from Line 1 and multiply the result by the daily interest rate for each day late. (The annual interest rate is subject to change each year.) Access the annual interest rate.

Visit the Online Additions to Tax and Interest Calculator to calculate the above information.

Any changes to the Form MO-941 previously filed cannot be submitted via the online filing process and must be submitted to the Department via mail, fax or email.

Information can be submitted by one of the following methods listed:

• Provide a copy of the W-2C(s) if the error was caught after the original W-2 was submitted.
• Provide a copy of the payroll ledger if the error was caught before a W-2 was issued.
• Provide a copy of the original 1099-R and a copy of the corrected 1099-R

Any changes to the Form MO-941 previously filed cannot be submitted via the online filing process and must be submitted to the Department via mail, fax or email.

Information can be submitted by one of the following methods listed:

If an error was made, complete an Employer's Withholding Tax Income Return (Form MO-941) with the amended box on the top right corner marked for each period to be adjusted. This box should be checked to correct a previously filed return to indicate an increase or decrease in the amount of tax liability.

• Provide a copy of the payroll ledger if the error was caught before a W-2 was issued.

To receive a refund of the overpayment: attach the Employer’s Refund Request Form 4854. If no form is attached, overpayment(s) generated will remain as credit(s) on the account. (Please note if an overpayment has been authorized, the overpayment is subject to be used as an offset towards any debt.)

Any changes to the Form MO-941 previously filed cannot be submitted via the online filing process and must be submitted to the Department via mail, fax or email.

Before submitting the form(s), ensure proper documentation is attached and the Form MO-941 contains a signature for Department processing.

Any changes to the Form MO-941 previously filed cannot be submitted via the online filing process and must be submitted to the Department via mail, fax or email.

Information can be submitted by one of the following methods listed:

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.

Submit an email to withholding@dor.mo.gov 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 Form MO-941 Online Reporting website to file their reconciliation return. Transferred payments will not be reflected on the Collector Solutions website.

Submit a request containing the Missouri Tax Identification Number and period(s) in question. A letter will be sent to the business address listed on file with the summary breakdown of the information requested.

Information can be submitted by one of the following methods:

If compensation was not retained on your employer's Withholding Tax Return (Form MO-941), the Department has calculated the correct amount for you and placed the overpaid portion as an available credit on your account.

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

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

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

Yes. Please refer to the Missouri Electronic Specifications and Guidelines for the record layouts.

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

• Electronic Filing – acceptable for any employer, required for 250 or more employees. Please refer to the Electronic Specifications and Guidelines.
• Compact Disc
• Flash Drive

We will not accept compressed data files.

Starting in 2018, for the 2017 tax year, employers with 250 or more employees must submit the Form MO-W-3 and accompanying Form W-2’s electronically by January 31, 2018.

Please refer to the Electronic Specifications and Guidelines.

Yes. Your compact disc(s) or flash drive(s) must contain an external label containing the tax year, Missouri Tax ID number, Business name, and return address. If you are submitting more than one (1), put a label on each, and number them according to the order they should be processed. If you wish to password protect your compact disc or flash drive, label your item as “Password Protected” and the date the password was sent to the Department, prior to mailing.

The due date for filing electronically is January 31, other methods of filing have until the last day of February for each preceding calendar year. If the due date falls on a weekend, the due date is the next business day. For additional information see the Employer’s Tax Guide.

Yes. Extension requests must be filed by the due date of the W-2 information. Email the request to withholding@dor.mo.gov or mail the request to the Missouri Department of Revenue, PO Box 3330, Jefferson City, MO 65105-3330.

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

Electronic files cannot be password protected. Compact Disc(s) or Flash Drive(s) can be password protected. The password must be emailed to elecfile@dor.mo.gov. The subject of your email must read “Compact Disc or Flash Drive Password”. Your email must contain all of the information displayed on the label of your CD or flash drive.

Yes. You may report more than one company when filing electronically or by compact disc or flash drive.

Yes. Beginning 2018 for tax year 2017, electronic filing is accepted for all filings. Electronic reporting is required for employer’s that issue 250 or more W-2’s.

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

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

Yes.

No modifications.

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.

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:

• Wages from which taxes were withheld; and,
• Income reported on an information report for an S corporation or partnership.

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

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, PO Box 3375, Jefferson City, MO 65105-3375, fax 573-522-6816 or email to withholding@dor.mo.gov. 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:

• Form 1099-DIV Dividends and Distributions
• Form 1099-G Certain Government Payments
• Form 1099-INT Interest Income
• Form 1099-MISC Miscellaneous Income
• Form 1099-OID Original Issue Discount
• Form 1099-PATR Taxable Distributions Received From Cooperatives
• Form 1099-R Distributions From Pensions, Annuities, Retirement
• Profit-Sharing Plans, IRAs, Insurance Contracts, etc., and
• Form 5498 IRA Contribution Information

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

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. If a Form W-2G has been issued, a copy of that form should also be filed with the Form MO-99 and Form MO-96.

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.

To the Missouri Department of Revenue, PO Box 3330, Jefferson City, MO 65105-3330.

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.

No, the 1099-NEC does not have a cover form. It should be submitted without a cover form.

You can submit the form electronically to income@dor.mo.gov, or by mail to the Missouri Department of Revenue, PO Box 385, Jefferson City, MO 65105-0385.

Yes, you will need to submit both forms to the Department. The 1099-MISC will require cover form, MO-96. The 1099-NEC has no cover form.