Withholding Taxes: Missouri

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

Authors: Alan L. Rupe and Aaron Sauerwein, Kutak Rock LLP

Summary

• Residents are subject to Missouri income tax withholding for work performed in the state and for work performed in another state for a Missouri employer, unless the employer withholds income tax for the state where the work was performed. Nonresidents working for a Missouri employer are subject to Missouri income tax withholding if the nonresident employee performs all services in Missouri. A different rule applies if only part of the nonresident's services were performed in Missouri. See Withholding on Residents, Nonresidents and Expatriates.
• Employers use the information from each employee's Form MO W-4 to determine the amount of income tax to withhold from their pay. Within 20 days after hiring an employee, the employer must submit a copy of the form to the Missouri Department of Revenue. See Employee's Withholding Allowance Certificate.
• The method of withholding on payments of supplemental wages, such as bonuses, depends on whether they were paid together with, or separately from, regular wages. See Supplemental Wages.
• Missouri employers are required to keep certain income tax withholding records for at least three years. See Recordkeeping Requirements.
• Localities including Kansas City and St. Louis have requirements pertaining to withholding taxes. See Local Requirements.