Unemployment Insurance Tax (FUTA/SUTA): Mississippi

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• Mississippi uses the common law test to determine who is an employee for state unemployment insurance (SUI) tax purposes. See Common Law Test.
• The law defines wages for SUI purposes as all compensation for personal services, including salaries, commissions, bonuses and the cash value of all noncash compensation. The annual total SUI tax rate is based on a range of rates. See SUI Taxable Wages; Contribution Rates.
• The Mississippi anti-SUTA dumping law mirrors the federal SUTA Dumping Prevention Act. Under state law, employers that knowingly attempt to manipulate businesses to get a lower tax rate are liable for serious penalties. See SUTA Dumping.
• An employer that is required to make unemployment insurance contributions must file quarterly reports. In addition, employers that operate more than one establishment in Mississippi may be requested to submit Multiple Worksite Reports. See Quarterly Reporting Requirements; Multiple Worksite Reporting.
• Experience rated employers in Mississippi may pay their quarterly unemployment contributions in equal amounts throughout the year. See Quarterly Reporting Requirements.
• An employer's account will not be relieved of charges for benefit overpayments caused by the employer's failure to respond properly to requests for information. See Benefit Overpayments.
• All Mississippi employers must maintain employee records for at least five years and make them available for inspection by the state Department of Labor. See Recordkeeping Requirements.