| Q. |
Do I have to pay Missouri unemployment tax? |
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| A. |
An entity (person, partnership, corporation, etc.) that employs a worker may become liable for Missouri state unemployment tax. Liability depends on several factors, including the type of entity and the type of work being performed. A discussion of how an entity becomes liable is in the section "Liability for Missouri Unemployment Tax".
The Division uses the form "Report to Determine Liability Status" to gather information to see whether an entity is liable for state unemployment tax or not. Even entities which are not liable must complete and return this form. The same information may be provided online at Online Registration for New Business <-- Register for Business Taxes Here.
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| Q. |
How do I get set up to pay state unemployment tax? |
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| A. |
To register with the Division you should complete a "Report to Determine Liability Status" or the online registration (see above). If you are liable for state unemployment tax, the Division will send you an official written determination to that effect and you will receive "Quarterly Contribution and Wage Reports" on which to report your employees.
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| Q. |
What will my tax rate be? |
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| A. |
A new employer receives an assigned beginning tax rate based on its industrial classification. The current new employer rates are in a table in the "Tax Rates" section.
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| Q. |
Now that I have employees, what other agencies should I contact? |
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| A. |
The Missouri Department of Revenue and Missouri Department of Labor and Industrial Relations, Division of Employment Security have developed a combined Internet registration process allowing individuals and companies who conduct business or employ workers in Missouri to register with both agencies at once.
One application can be completed online at Online Registration for New Business <-- Register for Business Taxes Here to register taxpayers for the following:
- retail sales tax
- withholding tax
- unemployment tax
- corporate/franchise tax
- consumer's use tax
- vendor's use tax
The Division does not have a complete list of agencies to call. However, some which you may need to contact about your employees are:
- Internal Revenue Service
(income tax withholding, social security and Medicare, federal unemployment tax) -- visit your local IRS office. Your local library may have forms and information as well. Also, the IRS has a web site which you may find useful.
- Missouri Department of Revenue (income tax withholding) -- The Department of Revenue may be contacted by phone at (573) 751-5860, or write to Missouri Department of Revenue, P.O. Box 999, Jefferson City MO 65108-0999.
- Missouri Division of Workers Compensation (workers compensation insurance) -- You may contact the Division by phone at (573) 526-4941, or write to Missouri Division of Workers Compensation, P.O. Drawer 58, Jefferson City MO 65102-0058.
- Your city and county (city withholding, permits, etc.)
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| Q. |
Where do I get a federal identification number? |
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The Internal Revenue Service issues federal employer identification numbers (EIN). Application may be made online at http://www.irs.gov/businesses/small/article/0,,id=102767,00.html OR you can request a form SS-4 (EIN application) and instructions by calling the IRS at 1-800-TAX-FORM (1-800-829-3676).
The IRS also provides information on the internet about who must have an EIN and how to get one. The site also has an index of some other helpful teletax employer tax topics.
You can request a form SS-4 (EIN application) and instructions by calling the IRS at 1-800-TAX-FORM (1-800-829-3676).
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| Q. |
What are the requirements for Federal unemployment tax? |
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| A. |
The reporting requirements of the Federal Unemployment Tax Act (FUTA) are similar to those of Missouri unemployment tax, but are not identical. Federal unemployment tax is administered by the Internal Revenue Service. Contact them for information on your liabilities for federal unemployment tax.
The IRS provides information on the internet about federal unemployment tax. There is also an index of some other helpful teletax employer tax topics. The IRS's Digital Daily has pointers to many different areas of information.
You can contact the IRS by phone for publications and forms at 1-800-TAX-FORM (1-800-829-3676). Some useful publications for business owners are:
- Publication 937 - "Employment Taxes"
- Publication 334 - "Tax Guide for Small Business"
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| Q. |
Is Missouri a "credit reduction state"? |
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| A. |
Employers in certain states do not receive the full 5.4 percent credit on their federal unemployment tax for paying state unemployment tax. These are called "credit reduction states." Missouri is not a credit reduction state.
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| Q. |
How can I reduce my tax rate? |
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A beginning rate is fixed for all new employers of the same Standard Industrial Classification and cannot be affected by an employer. However, after two to three years an employer usually becomes eligible for an experience rate which is based partly on the claims against the employer's account. An employer may attempt to keep an experience rate lower by maintaining stable employment (few layoffs) and by reviewing unemployment claims against it's account to ensure that they are not in error
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