The Missouri Department of Revenue (DOR) has adjusted withholding tax calculations based on information provided by the IRS in response to the Tax Cuts and Jobs Act (Pub. L. 115-97). The DOR has revised Form 4282, Employer’s Tax Guide, the withholding tables, the withholding tax calculator, and Form MO W-4, Employee’s Withholding Allowance Certificate. All have an updated revision date of March 8, 2018. The supplemental wage tax withholding rate remains 5.9%. The DOR previously announced that the employer’s tax guide would be revised to reflect federal changes.
The DOR encourages employees to review their state withholding to ensure the appropriate amount of state income tax is withheld for 2018. According to the DOR, employers should not have to adjust withholding for amounts withheld using earlier versions of the 2018 tables. All updated documents are available on the Missouri Department of Revenue Employer Withholding page (under Federal Tax Reform Bill).
Be sure to read the article, “IRS Releases 2018 Form W-4, Missouri Updates State Employee Withholding Allowance Certificate” in PayState Update, Issue 6, Vol. 20.
