Missouri Payroll Compliance Guide 2026: Complete Employer Reference

Missouri Payroll Overview

Missouri payroll changed materially in 2024 and 2025. The 2024 income tax reform collapsed Missouri’s multi-bracket graduated structure into a single flat rate of 4.7%, effective tax year 2024. That eliminated the bracket lookups and made withholding calculations simpler for employers.

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 new statewide paid sick leave requirement effective May 2025. Both changes are now in effect. If you haven’t updated your minimum wage notices and implemented paid sick leave accrual, you are out of compliance.

On the local tax front: St. Louis and Kansas City previously enacted local minimum wage ordinances above the state minimum. Both were struck down by Missouri courts applying the state preemption statute (RSMo §285.055). State law preempts local minimum wages, and no Missouri city or county can set a rate higher than the statewide floor.

Missouri Payroll Taxes: 2026 Rates and Wage Bases

Missouri Income Tax Withholding: Flat 4.7%

Missouri’s prior graduated income tax had up to nine brackets and topped out at 5.4%. The 2024 reform simplified the structure to a single flat rate of 4.7% applicable to all taxable wages. For employers, this means one calculation: multiply taxable wages by 4.7% and that’s your state withholding amount for the pay period.

Missouri MO W-4 Form

Employees complete a Missouri MO W-4 withholding certificate. The MO W-4 determines the employee’s personal exemptions and additional withholding elections for Missouri. Employees who do not submit an MO W-4 should have Missouri withholding calculated at the default 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. Annual W-2 reconciliation is due January 31. Missouri requires electronic filing of W-2s for employers with 250 or more W-2s.

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 $10,500 per employee per year.

New Employer Rate and Experience Rating

New Missouri employers pay SUI at 2.376% on the first $10,500 per employee, capping the new-employer per-employee cost at $249.48 per year. The experienced-employer range runs from 0% to 6.5%. Missouri’s range starts at 0%—employers with exceptional claim history can reach the floor. At the 6.5% ceiling, the per-employee cap is $682.50 per year.

Missouri uses a benefit ratio formula for experience rating. Your benefit ratio equals the unemployment benefits charged to your account divided by your average annual taxable payroll over the measurement period. Lower ratios mean lower rates. 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: Proposition A

Missouri Proposition A, approved by voters in November 2024, created a statewide paid sick leave requirement effective May 2025. The law operates through a ballot initiative, not the legislature, making it harder to repeal. Enforcement began in 2025 and continues into 2026.

Accrual Requirements

Accrual rates differ by employer size, measured by number of employees:

Sick leave accrues from the first day of employment. New employees may use accrued sick leave after 90 days of employment. Unused leave carries over year to year, subject to the applicable annual usage cap.

Permitted Uses

Employees may use Proposition A sick leave for:

• Their own physical or mental illness, injury, or medical condition
• Care of a family member with an illness or medical condition
• Closure of the employee’s workplace or the school/childcare facility of a family member due to public health emergency
• Matters related to domestic violence, sexual assault, or stalking

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. Prior to Prop A, Missouri’s minimum was $13.75 in 2025. The ballot initiative also requires annual CPI-based increases going forward, so the rate will adjust each January 1 based on inflation.

No Local Minimum Wage Ordinances

Missouri state law (RSMo §285.055) preempts local minimum wage ordinances. St. Louis passed a $10/hr local minimum in 2017; the Missouri Supreme Court struck it down based on the preemption statute. Kansas City’s attempt faced the same outcome. Proposition A itself was a statewide ballot initiative that bypasses legislative preemption concerns, but it does not revive local ordinance authority. 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 Paid Sick Leave notice (Prop A)
• 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 flat income tax rate of 4.7% for 2026, following the 2024 reform that simplified the prior graduated structure. Every dollar of taxable wages faces the same 4.7% rate. Employees claim personal exemptions on Form MO W-4, which reduces the taxable wage amount before the flat rate applies.

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. The rate will increase annually with CPI. No Missouri city or county 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 $10,500 per employee per year, capping at $249.48 per employee. Experienced employers range from 0% to 6.5%. Missouri’s $10,500 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?

Yes, since May 2025. Proposition A created statewide paid sick leave. Employers with 15 or more employees provide 1 hour per 30 hours worked, up to 56 hours per year. Employers with fewer than 15 employees provide 1 hour per 30 hours worked, up to 40 hours per year. Accrual begins on day one; employees may start using leave after 90 days.

Can Missouri cities set their own minimum wage?

No. Missouri state law (RSMo §285.055) preempts local minimum wage ordinances. St. Louis and Kansas City previously passed local minimums that were struck down by courts. 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.