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Insurance offered through OnPay Insurance Agency, LLC (CA License #0L29422)
Updated: January 6, 2023
As a small business owner in the Show Me State, you’ve got a lot of things to show. Whether you own the tastiest ice cream shop in Springfield or the hippest cafe in St. Louis, you’re showing Missouri and what being a small business owner means to you — and one of over 500,000 businesses shaping the state.
Now we want to show you what it means to us. We’ve designed a nifty payroll calculator that can figure out all of the federal and state payroll taxes for you and your employees. Help us help you by simply inputting wage and W-4 information for each employee into the calculator, and let it do the rest of the work.
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.
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 5.3%, which applies to employees who make more than $8,585.00 annually.
In addition, any residents, as well as anyone who works in St. Louis or Kansas City, must pay a local income tax of 1%.
As an employer in Missouri, you have to pay unemployment insurance to the state. In 2023, the rate ranges from 0% all the way up to 6% on the first $10,500 in wages paid to each employee in a calendar year.
New employers pay 2.511%, or 1% if you’re a nonprofit.
You made it! You’ve checked “payroll taxes” off your to-do list so you can move onto the important things. Once each employee’s net pay is calculated (taking deductions and withholdings into consideration), you’re in the clear.
All you have to worry about is getting your employees paid on time as well as setting aside whatever you owe in FICA and UI taxes. Those numbers can add up quickly!
You will need to use Form 941 to file federal taxes quarterly, and Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. More details about employment tax due dates can be found here.
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 & 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.
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.