The Missouri Department of Revenue released the 2017 state income tax withholding tables and guide. The annual withholding formula may be found in the guide or here.

The annual standard deduction amounts for 2017 are as follows:

— Single: $6,350
— Married and spouse works: $6,350
— Married and spouse does not work: (this is determined by the check box on Form MO W-4, Line 2, and is not a separate filing status): $12,700
— Head of household: $9,350

The Form MO W-4  allowances:

— Single or married and spouse works: $2,100 for the first allowance and $1,200 for each additional allowance.
— Married and spouse does not work: $2,100 for the first allowance, $2,100 for the second allowance (for the non-working spouse) and $1,200 for each additional allowance
— Married filing combined: $4,200 for the first allowance and $1,200 for each additional allowance thereafter.
— Head of household: $3,500 for the first allowance and $1,200 for each additional allowance thereafter.

Supplemental Wages

The 2017 supplemental rate of income tax withholding continues at 6%.

2016 Forms W-2 due February 28, 2017

For calendar year 2016, employers of 250 or more employees are required to file Forms W-2 information on CD or a flash drive along with Form MO W-3, Transmittal of Tax Statements, with the Missouri Department of Revenue. Employers filing less than 250 Forms W-2 may file on paper, CD or flash drive.

The deadline to file is February 28, 2017.

See more information.

Form W-2 deadline accelerated to January 31 effective for tax year 2017

As we reported in Tax Alert 2016-1365, effective January 1, 2018, recently enacted HB 1582 changes the due date for employers to file Forms W-2 with the Missouri Department of Revenue to January 31. As a result, state copies of calendar year 2017 Forms W-2 will be due by January 31, 2018. Employers with 250 employees will be required to file Forms W-2 electronically.

According to a Department representative, effective January 1, 2018, employers with 250 or more employees will be required to file over an electronic filing system that the Department is currently developing. Filing on CD or flash drive will no longer be allowed. The Social Security Administration's EFW2 format (including the RE and RS records) must be used. (Email response to inquiry, withholding tax section representative, July 22, 2016.)

If an employer is granted a waiver of the federal requirement to file electronically by the Internal Revenue Service, the Department will automatically waive the requirement to file the state copy electronically.

Annual filing threshold increased

Currently, an employer is allowed to file an annual withholding tax return rather than quarterly returns when the aggregate amount withheld is less than $20 in each of the four preceding quarters. Effective August 28, 2016, HB 1582 changes the threshold for annual reporting to less than $100 in each of the four preceding quarters if the employer is not otherwise required to file a withholding return on a quarterly or monthly basis.

For more information on Missouri income tax withholding, go to the Department's website.

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