State Of Missouri Employer'S Tax Guide - 2012 (Page 4 of 28) in pdf

3. Who are Employees?

2. Employer Registration and I.D. Number

The term “employee” for Missouri withholding purposes has the

A. Employer to Register for Withholding

same meaning as it has for federal withholding (see Circular E,

Every employer paying wages to an employee working in

Employer’s Tax Guide, published by the Internal Revenue Service).

Missouri must register with the Missouri Department of

This definition is the same for Missouri residents and nonresidents.

Revenue. Employers may register electronically at https://dors.

mo.gov/tax/coreg/index.jsp or by completing a paper application

4. What are Taxable Wages?

(Form 2643). A permanent registration number will be assigned.

The term “wages” for Missouri income tax withholding purposes

This number is not transferable and should be referred to in all

has the same meaning as it has for federal withholding (see Circular

reports and correspondence concerning Missouri income tax

E, Employer’s Tax Guide, published by the Internal Revenue

withholding. If you have filed the registration application and have

Service). Wages include all pay given to an employee for services

a report and payment due before you receive your registration

performed. The pay may be in cash or in other forms. Wages

number, write “Applied For” in the “MO Tax I.D. Number” box,

include salaries, vacation allowances, bonuses, and commissions,

list the name of the business exactly as it is on the registration

regardless of how measured or paid.

application, and file the report timely to take advantage of the

compensation deduction and to avoid interest and additions to tax

A. Nonresident Employees Subject to Withholding

charges. A new application is required and a new tax identifica‑

If a nonresident employee performs all services within Missouri, tax

tion number will be assigned when any change in ownership or

shall be withheld from all wages paid him/her as in the case of a

ownership type occurs. An employer who receives a new tax

resident. If services are performed partly within and partly without

identification number as a result of a change in ownership type, must

the state, only wages paid for services performed within Missouri

file a Form MO‑941F, Employer’s Withholding Final Report, to close

are subject to Missouri income tax withholding, pro vided the

the former account. Failure to close the former account will cause

employee files with the employer a Form MO W‑4A, Certificate of

non‑filer notices to be issued.

Nonresidence/Allocation of Withholding Tax. The employee may

Note: If your business is only open for several months out of the

determine the portion of wages allocable to Missouri on the basis

year, you may register as a seasonal employer. As a seasonal

of the preceding year’s experience.

employer, you will only be required to file a Form MO‑941 for

If only a portion of an employee’s wages is subject to Missouri

the periods that you indicated you will have employees on Form

income tax withholding, then the amount of Missouri tax required

2643, Missouri Tax Registration Application. (You may be consid‑

to be withheld is calculated using a percentage of the amount

ered a transient employer. Please refer to paragraph 1, “Transient

listed in the withholding tables. The calculation begins by deter‑

Employer Defined”.)

mining the amount that would be withheld if all the wages were

B. Change in Organization or Ownership

subject to Missouri withholding. This amount is then multiplied by

A new Missouri Tax I.D. Number is required for most

a per centage that is determined by dividing the wages subject to

Missouri withholding by the total federal wages.

organizational or ownership changes. Contact the Department

if any change in organization or ownership occurs. A new

Example: A nonresident earns $20,000 in wages, $12,000 from

Missouri Tax I.D. number can be obtained by registering

Missouri sources. Missouri withholding would be 60 percent

online

https://dors.mo.gov/tax/coreg/index.jsp

($12,000 / $20,000 equals 60 percent) of the withholding required

completing a paper application (Form 2643). You may

on $20,000. Therefore, if $100 per month should be withheld

e‑mail

businesstaxregister@dor.mo.gov

you

may

call

for an individual earning $20,000, then for this nonresident, $60

(573) 751‑5860 for more information about registration re quire‑

should be withheld each month ($100 x 60 percent = $60).

ments and how they apply to your specific situation.

B. Resident of Missouri Employed in Another State

C. Employer With More Than One Payroll Unit —

A Missouri resident paying income tax to another state because of

Complex Employer

employment in that state may file a Form MO W‑4C, Withholding

If a consolidated report and remittance of the tax withheld cannot

Affidavit for Missouri Residents. Income received for services

be made by the employer because of the complexity of the

performed in another state not having a state income tax is subject

organization, branch offices or divisions may be designated as

to Missouri withholding. If services are performed partly within

withholding agents. The withholding agents may perform the actual

and partly without the state, only wages paid for services performed

withholding and remitting. However, regardless of any internal

within Missouri are subject to Missouri withholding tax, if the

arrangements that may be established by the complex employer,

services performed in the other state are subject to the other state’s

the legal responsibility and liability under the law still rests with

income tax. If only a portion of an employee’s wages is subject to

the home office.

Missouri withholding tax, then the amount of Missouri tax required

If the complex employer has designated withholding agents and the

to be withheld is calculated using a percentage of the amount

agents wish to claim the compensation deduction, only one agent

listed in the withholding tables. The calculation begins by deter‑

is entitled to the full compensation deduction and the remaining

mining the amount that would be withheld if all the wages were

agents are entitled to 1/2 percent compensation deduction of

subject to Missouri withholding. This amount is then multiplied by

income taxes withheld if the returns are filed timely.

a per centage that is determined by dividing the wages subject to

The home office must, in all cases, apply to the Missouri Depart‑

Missouri withholding tax by the total federal wages.

ment of Revenue using a Form 2643, Missouri Tax Registration

Example: The employee performs 40 percent of his/her services in

Application, for a Missouri Tax I.D. Number so the deduction for

Kansas. The remaining 60 percent of the employee’s services are

compensation can be allowed.

performed in Missouri. If the total withholding on all earnings is

$40 per month, the actual withholding for Missouri would be $24

($40 x 60 percent = $24).

State Of Missouri Employer'S Tax Guide - 2012 Page 4

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