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Updated: January 5, 2023
According to the Small Business Administration, over 99% of businesses in Mississippi are small businesses. A quarter-million small businesses call Mississippi home, and they all share one thing in common: they all have to deal with payroll taxes. Luckily, our neat (if we can say so ourselves) payroll calculator is here to help you avoid any payroll tax fiascos for your small business. Whether you own an old-school diner in Jackson, a trendy cafe in Biloxi, or a souvenir store near Elvis’s birthplace, our free calculator can help any Mississippi business get payroll right.
The process is simple. All you have to do is enter each employee’s wage and W-4 information, and the calculator will process their gross pay, deductions, and net pay for both Mississippi and Federal taxes.
First and foremost, we’ll walk through a quick overview of federal payroll taxes that all employees have to pay. However, if you would like to see each step in detail, head on over to our comprehensive step-by-step guide.
Mississippi’s state income tax is fairly straightforward. There are just three income tax brackets, and the tax rates range from 0% to 5%. Employees who earn more than $10,000 a year will hit the top bracket.
No cities within Mississippi charge any additional municipal income taxes, so it’s pretty simple to calculate this part of your employees’ withholding.
As an employer, you’re responsible for paying SUI (remember, if you pay your state unemployment tax in full and on time, you get a 90% tax credit on FUTA).
Mississippi’s SUI rates range from 0% to 5.4%. The taxable wage base in 2023 is $14,000 for each employee (which is the same as 2022).
If you are a new small business owner (congratulations, by the way!), you’ll pay 1% the first year.
That’s all right when payroll taxes are right! Calculate each employee’s net pay, cut those checks (or transfer those direct deposits, whatever suits your employees’ fancy), and make sure you have enough left in your own account to cover FICA and unemployment taxes.
Be sure to submit your federal tax filings by filling out Forms 940 (yearly) and 941 (quarterly). Deposits can also be made on an ongoing basis through the EFTPS payment system. Learn more about the IRS deadlines here.
Our payroll calculator can take you far, but you can never learn enough about all the intricacies of payroll taxes, so here are a couple more resources that can help you understand Mississippi payroll a little better:
Mississippi Department of Employment Security (601) 321-6000 | Register Your Business and Pay Unemployment Tax | Employer Services
Mississippi Department of Revenue (601) 923-7700 | Tax Rates | Withholding Tax FAQs
These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.