Form Dor-4282 - Employer'S Tax Guide - Missouri Page 5
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44and making payment of any wages taxable under Sections 143.011
8. Determining Proper Amount to Withhold
to 143.998, RSMo. This also includes active duty pay to members
To determine income tax withholding, take the following factors
of the armed services. For further information call (573) 751-5752.
into account:
Withholding for retired members of the armed forces is covered in
1. Wages paid during the payroll period, including tips and
Section 6, A.
vacation pay;
2. Marital status — There are separate withholding tables for
7. Supplemental Wage Payments, Vacation Pay,
single and married employees; and
Tips and Lump Sum and Periodic Distributions
3. Withholding allowances as indicated on the Form MO W-4.
A. Supplemental Wage Payments
A. Form MO W-4, Employee Withholding Allowance Certificate
If supplemental wages are paid, such as bonuses, commissions,
Each employee is required to file a completed Form MO W-4 to
overtime pay, back pay, including retroactive wage increases, or
determine the number of exemptions to which the employee is enti-
reimbursements for nondeductible moving expenses in the same
tled. The Form MO W-4 will be used by the employer to determine
payment with regular wages, withhold Missouri income tax as if the
the amount of Missouri income tax which must be withheld from
total of the supplemental and regular wages were a single wage
each paycheck. If an employee has more than one employer, he/she
payment for the regular payroll period.
should claim a smaller number, or no allowances, on each Form
MO W-4 filed with employers other than his/her principal employer
If supplemental wages are paid in a payment separate from regular
so that the total amount withheld will be closer to the actual income
wages, the method of withholding Missouri income tax depends in
tax liability. Failure to reduce the Form MO W-4 allowances could
part on whether you withhold income tax from the employee’s
cause an employee to have too little tax withheld and subject the
regular wages.
employee to underpayment penalties. If an employee expects to
If you withhold Missouri income tax from the employee’s regular
have income other than his/her wages, he/she may request that addi-
wages, you may choose one of two methods for withholding
tional amounts be withheld in addition to the amounts indicated by
income tax on the supplemental wages:
the allowances claimed on the employee’s Form MO W-4. The addi-
tional amount should be included on Form MO W-4, Line 8.
1. Withhold a flat percentage rate of 3% of the supplemental
B. Exemption For Nontaxable Individuals
wages, using zero withholding allowances, or
Exemption from withholding for nontaxable individuals is valid only
2. Add the supplemental wages to the regular wages paid to
if an employee submits to the employer a completed Form MO W-4
the employee within the same calendar year for the payroll
certifying that the employee has no income tax liability from the
period and determine the income tax to be withheld as if the
previous year and expects none for the current year. Employees must
aggregate amount were one payment. Subtract the tax
file a Form MO W-4 annually if they wish to continue the exemption.
already withheld from the regular wage payment and with-
hold the remaining tax from the supplemental wage
9. Withholding Tables and Formula
payment.
A. Withholding Tables
If you have not withheld income tax from the regular wages, for
Withholding tables, prepared by the Missouri Department of
example when an employee’s withholding exemption exceeds the
Revenue, take into account allowable deductions; therefore, use
employee’s wages, you must use the method covered in Section 7,
the employee’s gross wages before any deductions, such as Federal
A, 2. Add the supplemental wages to the regular wages paid within
Insurance Contribution Act (FICA), state unemployment insurance,
the same calendar year for the payroll period and withhold income
pension funds, or insurance. In determining the amount of tax to be
tax on the total amount as if the supplemental wages and regular
withheld, use the table for the correct payroll period — daily,
wages were one payment for a regular payroll period.
weekly, biweekly, semimonthly and monthly periods. Tables show
wage brackets in the two (2) left-hand columns. The withholding
B. Vacation Pay
allowances are shown at the top of each of the remaining columns
If an employee receives vacation pay for an absence, the vacation
and correspond to the number of allowances claimed by an
pay is subject to Missouri income tax withholding as if it were a
employee on the Form MO W-4.
regular wage payment made for the payroll periods during the vaca-
tion. If vacation pay is paid in addition to regular wages for the vaca-
B. Percentage Formula Withholding
tion period, the vacation pay is treated as a supplemental wage
The formula on page 12 may be used on electronic data processing
payment.
equipment for withholding Missouri income tax. Any variation from
this formula must be approved in writing by the Director of Revenue.
The vacation pay of an employee who is not a resident of Missouri,
but works in Missouri, is subject to Missouri income tax with-
holding.
10. Return and Payment of Taxes Withheld
Every employer withholding Missouri income tax from employees’
C. Tips
wages is required by statute to report and remit the tax to the state
Employers must withhold Missouri income tax based upon total tips
of Missouri on Form MO-941. A separate reporting form must be
reported by the employee. Withhold Missouri income tax on tips using
filed for each reporting period. A personalized book of reporting
the same options indicated for withholding on supplemental wage
forms, detailing the employer’s name, address, employer identifica-
payments.
tion number, filing frequency and due date, is provided to each
D. Lump-sum and Periodic Distribution
active account. The voucher book supplied to an employer required
Missouri follows the federal guidelines for lump-sum and periodic
to pay on a quarter-monthly basis (see Section 12) also includes
payment vouchers for the four quarter-monthly periods. If an
distributions. On lump-sum distributions withhold at the rate of
6%. If a periodic distribution, follow the computer formula or tax
employer misplaces, damages or fails to receive the necessary
tables.
reporting forms, replacement forms should be requested, allowing
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