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 what being a small business owner means to you.
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.
For employees who more than $200,000 per year, you’ll need to withhold an Additional Medicare Tax of 0.9%, which brings the total employee Medicare withholding above $200,000 to 2.35%. Employers are not responsible for paying the Additional Medicare Tax.
FUTA taxes come with a huge caveat that you will want to know about. You can claim a tax credit of up to 5.4% for state unemployment tax you pay, as long as you pay in full and on time. It’s an easy way to save a whopping 90%, so make sure you take advantage! Only you as the employer are responsible for paying FUTA taxes, so you don’t need to withhold FUTA from your employees’ paychecks.
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. It’s a progressive income tax, meaning the more money your employees make, the higher the income tax. The top tax bracket is 5.9%, although the rate is scheduled to decrease incrementally over the next few years.
In addition, any residents, as well as anyone who works in St. Louis or Kansas City, must pay a local income tax of 1%.
OnPay processes payroll and automates all your tax payments and filings.
As an employer in Missouri, you have to pay unemployment insurance to the state. The rate ranges from 0% all the way up to 6% on the first $12,000 in wages paid to each employee in a calendar year.
New employers pay up to 2.7%.
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!