Free Missouri payroll tax calculator (and MO tax rates)

Federal payroll taxes for Missouri employers

First of all, let’s calculate federal payroll taxes for the sake of Uncle Sam. You can calculate all your employees’ federal withholdings, as well as any additional taxes your business is responsible for paying.

Here’s a quick rundown of the components that go into federal tax withholdings. For a more detailed explanation on all of the steps below, head on over to our comprehensive step-by-step guide.

• Gross wages, which is simply the amount of money an employee has earned during the last pay period.
  • For hourly employees, multiply the number of hours worked by their pay rate — and make sure you don’t forget to take overtime into consideration.
  • For salaried employees, divide each employee’s annual salary by the number of pay periods you have over the course of a year.
  • Bonuses, commissions, and tips are all part of gross wages as well.
• Calculate any pre-tax withholdings. If your employees have 401(k) accounts, flexible spending accounts (FSA), or any other pre-tax withholdings, subtract them from gross wages prior to applying payroll taxes.
• Deduct federal income taxes, which can range from 0% to 37%. We won’t get into the nitty-gritty here, but you can find further withholding information through the IRS Publication 15-T.
• Deduct and match any FICA taxes to cover Medicare and Social Security taxes:
  • For Social Security tax, withhold 6.2% of each employee’s taxable wages until they have earned $176,100 in a given calendar year. Employers must match this tax.
  • For Medicare tax, withhold 1.45% of each employee’s taxable wages until they have earned $200,000 in a given calendar year. Employers also must match this tax. For employees who more than $200,000 per year, you’ll need to withhold an Additional Medicare Tax of 0.9%, which brings the total employee Medicare withholding above $200,000 to 2.35%. Employers are not responsible for paying the Additional Medicare Tax.
• Pay FUTA unemployment taxes, which is 6% of the first $7,000 of each employee’s taxable income. FUTA taxes come with a huge caveat that you will want to know about. You can claim a tax credit of up to 5.4% for the state unemployment tax you pay, as long as you pay in full and on time. It’s an easy way to save a whopping 90%, so make sure you take advantage! Only you as the employer are responsible for paying FUTA taxes, so you don’t need to withhold FUTA from your employees’ paychecks.
• Subtract any post-tax deductions. Most of your employees won’t have any post-tax deductions, but you might need to withhold things like court-ordered wage garnishments such as child support. Make sure you take these into consideration as well.

Missouri state payroll taxes

Now that we’re done with federal taxes, let’s look at Missouri state income taxes. The first step to calculating payroll in Missouri is applying the state tax rate to each employee’s earnings, starting at 1.5%. It’s a progressive income tax, meaning the more money your employees make, the higher the income tax. The top tax bracket is 4.8%. In addition, any residents, as well as anyone who works in St. Louis or Kansas City, must pay a local income tax of 1%.

Missouri state unemployment insurance (SUI)

As an employer in Missouri, you have to pay unemployment insurance to the state.

• In 2025, the rate ranges from 0% all the way up to 6% on the first $9,500 in wages paid to each employee in a calendar year
• New employers pay 2.376%
• 1% if you’re a nonprofit

Additional Missouri payroll tax resources

Here are some helpful links that can help you become the payroll whiz your small business needs you to be!

Missouri Department of Revenue (573) 751-3505 | Employer Withholding Tax | Register Your Business Online | File and Pay Taxes Online | 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.