Missouri Payroll Compliance Guide 2026: Complete Employer Reference

Missouri Payroll Overview

Missouri payroll changed materially in 2024 and 2025. Income tax withholding still uses graduated rates, with the 4.7% top rate applying to Missouri taxable income above $9,436 for 2026.

More significantly for day-to-day operations: Missouri voters approved Proposition A in November 2024. Prop A raised the statewide minimum wage to $15.00 per hour effective January 1, 2026 (up from $13.75 in 2025), and created a statewide paid sick leave requirement. HB 567, signed July 10, 2025, repealed the paid sick leave requirement effective Aug. 28, 2025, and ended annual inflation adjustments to the minimum wage. If you haven’t updated your minimum wage notices for 2026, you are out of compliance.

On the local front: state law (RSMo §67.1571) bars municipalities from requiring a minimum wage that exceeds the state minimum wage.

Missouri Payroll Taxes: 2026 Rates and Wage Bases

Missouri Income Tax Withholding: Top Rate 4.7%

Missouri taxes wages at graduated rates from 0% to 4.7%. For 2026, the withholding formula subtracts a standard deduction based on filing status ($16,100 for single filers, $24,150 for head of household and $32,200 for married employees whose spouse does not work), then applies rates that start at 0% on the first $1,348 of Missouri taxable income and reach 4.7% above $9,436. Supplemental wages paid separately from regular wages may be withheld at a flat 4.7%.

Missouri MO W-4 Form

Employees complete a Missouri MO W-4 withholding certificate. The MO W-4 sets the employee’s filing status and any additional or reduced Missouri withholding. If an employee does not turn in an MO W-4, withhold at the single rate. Keep the MO W-4 on file; you may need it in a Department of Revenue audit.

File withholding returns and remit deposits through the Missouri Department of Revenue’s online portal at mytax.missouri.gov. Employers with 250 or more employees must file Form MO W-3 and their W-2s electronically by January 31; paper filers have until the last day of February.

Withholding Deposit Frequency

Missouri assigns deposit frequencies based on your total annual withholding liability. Quarterly filers deposit by the last day of the month following each quarter. Monthly filers deposit by the 15th of the following month. Semi-monthly filers have accelerated deposit deadlines. Your frequency appears in your MO DOR account.

Missouri SUI: Unemployment Insurance

Missouri SUI is administered by the Missouri Division of Employment Security (DES). The taxable wage base in 2026 is $9,000 per employee per year.

New Employer Rate and Experience Rating

New Missouri employers pay SUI at 2.376% (1.0% for 501(c)(3) nonprofits) on the first $9,000 per employee, capping the new-employer per-employee cost at $213.84 per year. The experienced-employer range runs from 0.0% to 6.0%, not including any maximum rate surcharge or contribution rate adjustment. Missouri’s range starts at 0%—employers with exceptional claim history can reach the floor. At the 6.0% ceiling, the per-employee cap is $540.00 per year.

An employer generally becomes eligible for an experience rate after two full calendar years of liability. Missouri computes the experience rate from a ratio of your account balance (taxes paid minus benefits charged) to your average annual taxable payroll. DES sends annual rate notices before the new year.

Quarterly SUI Filing

File quarterly returns through the Missouri DES employer portal at labor.mo.gov/DES. Report per-employee wage detail and total taxable wages. Quarterly deadlines: April 30, July 31, October 31, January 31.

Missouri Paid Sick Leave: Repealed in 2025

Missouri Proposition A, approved by voters in November 2024, created a statewide paid sick leave requirement. On July 10, 2025, Governor Kehoe signed HB 567, which repealed that requirement effective Aug. 28, 2025. Employers may continue to offer earned paid sick time if they wish, but they are no longer required to do so.

Wage Payment Laws and Final Paychecks

Missouri wage payment rules come from RSMo Chapter 290 (Missouri Wage and Hour Law), enforced by the Missouri Department of Labor and Industrial Relations.

Pay Frequency

Missouri employers must pay wages at least semi-monthly (twice per calendar month). The gap between paydays cannot exceed 16 days. Exempt salaried employees may be paid monthly with employee consent.

Final Paycheck Deadline

Missouri requires final wages by the next regular payday after separation. This applies to both discharges and voluntary resignations. There is no same-day rule for terminations under Missouri law.

Vacation Payout

Missouri courts have held that accrued vacation is a wage if your policy promises to pay it out at separation. If your handbook says unused vacation is forfeited upon termination, that policy is generally enforceable. If your policy is ambiguous, courts may find in favor of payout. Write your vacation policy clearly and consistently enforce it.

Overtime and FLSA

Missouri has its own overtime law (RSMo §290.505) that applies to employers with 2 or more employees. The rate mirrors FLSA: 1.5× the regular rate for hours over 40 in a workweek. No daily overtime requirement exists. The white-collar exemption threshold follows federal FLSA at $684 per week.

Missouri’s state overtime law covers some employers below FLSA’s $500,000 revenue threshold, extending overtime protections to employees at smaller businesses that might otherwise fall outside federal coverage.

Missouri Minimum Wage 2026: $15 Under Prop A

Missouri’s minimum wage reached $15.00 per hour on January 1, 2026, under Proposition A. Missouri’s minimum was $13.75 in 2025. Under HB 567 (2025), the minimum wage will no longer be adjusted annually by the Consumer Price Index. Retail and service businesses with annual gross income under $500,000 are not required to pay the state minimum wage rate.

No Local Minimum Wage Ordinances

Missouri state law (RSMo §67.1571) bars municipalities from requiring a minimum wage that exceeds the state minimum wage. Proposition A did not change that. The $15.00 statewide rate is the floor and ceiling in Missouri—no city can go higher.

Tipped Employees

Missouri allows a tip credit. Tipped employees can be paid as little as 50% of the regular minimum wage in direct wages—with the 2026 minimum at $15.00, that puts the tipped direct wage floor at $7.50 per hour. Tips must bring total hourly earnings to at least $15.00. If tips fall short in a workweek, the employer makes up the difference.

New Employer Registration

Missouri employers register with two state agencies: the Missouri Department of Revenue for income tax withholding and the Missouri Division of Employment Security for SUI.

Federal EIN

Apply at irs.gov/ein first. Free, immediate online issuance.

Missouri Withholding Registration (MO DOR)

• Where: Missouri DOR MyTax Missouri at mytax.missouri.gov
• What you get: Missouri Employer Withholding Account Number, assigned deposit frequency
• Information needed: Federal EIN, entity type, business name and address, first Missouri pay date

Missouri SUI Registration (DES)

• Where: Missouri DES employer portal at labor.mo.gov/DES
• Trigger: $1,500 in wages in any quarter, or one or more employees for 20 days in a year
• What you get: Missouri UI Employer Account Number, new-employer rate of 2.376%

New-Hire Reporting

Report new hires within 20 days of hire to the Missouri State Directory of New Hires at dss.mo.gov/newhire. Required: employee name, address, SSN, start date, and employer FEIN.

Required Workplace Postings

• Missouri Minimum Wage poster (updated for $15.00 in 2026)
• Missouri Unemployment Insurance poster
• Missouri Workers’ Compensation coverage notice
• Federal FLSA/minimum wage poster (DOL)
• FMLA poster (DOL, for employers with 50+)
• OSHA rights poster
• EEOC notice (employers with 15+)

Missouri Payroll Compliance Calendar 2026

Frequently Asked Questions

What is Missouri’s state income tax rate for 2026?

Missouri has a graduated income tax with rates from 0% to 4.7% for 2026. The top rate applies to Missouri taxable income above $9,436. Employees choose a filing status on Form MO W-4, which sets the standard deduction subtracted before the rates apply.

What is the minimum wage in Missouri for 2026?

Missouri minimum wage is $15.00 per hour, effective January 1, 2026, under Proposition A passed by voters in November 2024. Under HB 567 (2025), the rate is no longer adjusted annually by the Consumer Price Index. No Missouri city can set a higher local minimum due to state preemption law.

What is the Missouri SUI rate for new employers in 2026?

New employers pay 2.376% on the first $9,000 per employee per year, capping at $213.84 per employee. Experienced employers range from 0.0% to 6.0%. Missouri’s $9,000 wage base is on the lower end, which limits maximum per-employee SUI cost.

When must Missouri employers pay a terminated employee their final paycheck?

Final wages are due on the next regular payday after separation. Missouri applies this rule equally to discharges and resignations. There is no accelerated same-day deadline.

Does Missouri require employers to provide paid sick leave?

No, not since Aug. 28, 2025. Proposition A created a statewide paid sick leave requirement, but HB 567 repealed it effective Aug. 28, 2025. Employers may continue to offer earned paid sick time if they wish, but are no longer required to do so.

Can Missouri cities set their own minimum wage?

No. Missouri state law (RSMo §67.1571) bars municipalities from requiring a minimum wage that exceeds the state minimum wage. The statewide $15.00 rate under Proposition A is the only applicable minimum in Missouri.

Does Missouri have a paid family leave program?

No. Missouri has no state paid family or medical leave program. Federal FMLA covers eligible employees at companies with 50 or more workers. Any paid family leave comes from employer-provided PTO or short-term disability insurance.