Everything You Need to Know About Payroll in Missouri
If you’re an employer in Missouri, you know there are certain state and federal laws that have to be followed, no matter what industry you’re in or how many employees you have. One of the most important things to be aware of when it comes to payroll in Missouri, though, is the fact that both state and federal laws require you to withhold payroll taxes on your employees’ wages or salaries. But what exactly are payroll taxes? How do they work? And what can happen if you don’t pay them?
When you need to be compliant
Missouri law requires that any business or organization which pays wages as part of their operations be compliant with the current wage and hour laws set forth by state law. Employers who pay non-hourly wages have one year from the time the new minimum wage is set in order to comply. Employers who pay hourly must comply on January 1, 2020.
All hours worked are required by law to be compensated at one and one-half times the employee’s regular rate of pay for hours worked beyond 40 per week. Wages cannot be paid on a commission basis nor can commissions apply to overtime wages.
What are your business responsibilities?
Employees are typically the most expensive cost for a company and having accurate payroll can help you get a handle on expenses. But what does it take to do payroll? In this post, we’ll cover everything you need to know about how to do payroll in Missouri. Doing your payroll right means providing accurate documentation, processing payments efficiently, and complying with state and federal laws.
Who needs to be paid?
Nearly every employee needs to be paid on a monthly or weekly basis. Salaried employees will receive the same amount each week while hourly employees will receive a different wage each hour. The cost of payroll varies greatly depending on the state, the number of people being paid, and how many hours they work per week. It’s essential that you know how much your company spends on payroll so you can create a plan for meeting these expenses.
When do I pay employees?
– January 1 – March 31: Wages are due within 10 days of the end of the pay period – April 1 – June 30: Wages are due within 20 days of the end of the pay period – July 1 – September 30: Wages are due within 30 days of the end of the pay period. How do I file payroll taxes?: All employees must complete a Form WH-4, Employee’s Withholding Allowance Certificate, and provide it to their employer. The Employer can then withhold income tax at an appropriate rate and send a copy of the withholding form with Form W-2, Wage, and Tax Statement, to the employee.
Do I really need an accountant?
First, let’s look at the benefits of hiring an accountant:
* A professional tax expert will know what deductions and credits you can take on your taxes.
* This person can help you prevent costly mistakes.
* They know all the rules related to doing payroll and HR.
Also, if you are new or have a small business, it can be tough to learn how to do payroll yourself. An accountant will ensure everything is done properly and that your employees are paid on time. This is important because not only will they be more satisfied with their work and give better service as a result but you won’t risk any penalties for being late or improperly paying your employees.
How much do I have to spend on payroll taxes?
Depending on your business type, you will be required to pay a variety of payroll taxes. These are income taxes, Social Security/Medicare taxes, and federal unemployment taxes. The amount that you must pay is based on the size of your company and its tax classification. If you’re unsure how much your company should pay, contact a CPA or other professional tax expert for guidance.
What forms will I use, and where can I get them?
Make sure you’re aware of which forms are required and how to fill them out. Here’s a list of the main ones:
1) Weekly Payroll Report,
2) Annual Tax Reconciliation,
3) Hourly Wage/Non-Hourly Wage,
4) Current Liability Form and
5) Miscellaneous Forms.
All these forms can be found on the MO Division of Labor website and at many places around the state that offer payroll processing services. What if I make an error?: Be careful not to make any errors when completing the forms, as they will have a direct impact on your tax liability and how much your employees owe. If you do make an error, contact your tax advisor or accountant right away so they can help fix it before it becomes too late!
Can I make payments electronically?
It is possible to make payments electronically using a credit card, debit card, or electronic bank transfer. When this is available as an option you’ll see it displayed on the payment page of your online time clock. From there, you just select the account from which the money will be drawn. This service costs only 1% of the total payroll amount for each transaction. There are no additional fees for making an electronic payment in person at an L&I Service Center with a customer check or cashier’s check, or by mailing a customer check or cashier’s check.
Are there any payroll tax holidays in Missouri?
How do you deal with payroll taxes if your business closes? If you close the business and sever employment before meeting the pay-in requirement, you have five years to come up with the employer portion of payroll taxes. However, you are required to report your termination date and claim any withholding tax credits or exemptions before December 31 of that year. For example, if your company was terminated on December 3rd and filed for bankruptcy that same day, you would be liable for 100% of all payroll taxes.
What if my business closes while we’re still dealing with payroll taxes?
It’s important that you close your business responsibly and pay all bills, including payroll taxes. Leaving a mess behind will make your life infinitely more difficult and may even keep you from getting back on your feet, so it’s best not to neglect this aspect of the process. Before you call it quits, make sure all employees are paid out of the business account rather than their personal accounts. Ask your accountant how long you have before the taxes are assessed – it will depend on what type of liability (accounts payable or inventory) is unpaid, but generally, six months is a safe bet for most businesses.