Capital City
Jackson
Timezone
CST
(
GMT-6
)
Paid Leave
None
Income Tax
3% - 5%
Employer Tax
10.80%
Capital City
Jackson
Timezone
CST
(
GMT-6
)
Paid Leave
None
Income Tax
3% - 5%
Employer Tax
10.80%
Mississippi payroll laws align with federal standards, as the state does not impose additional payroll taxes outside of federal requirements. Employers are responsible for withholding federal income tax, Social Security, and Medicare taxes from employees’ wages. Mississippi also requires unemployment insurance contributions, capped at a taxable wage base of $14,000 per employee. Employers must report new hires within 15 days and comply with child support withholding orders where applicable.
Access competitive benefits like health insurance and retirement plans, often at a lower cost through a PEO. Leverage its pooled volume for enterprise rates - resold to PEO customers, with no employment minimums in Mississippi.
Check out our comprehensive state hiring guide.
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FAQS
A PEO helps businesses in Mississippi stay compliant with federal and state labor laws by managing payroll, tax filings, employee benefits, and workers' compensation. It also provides expertise in HR practices and legal updates, ensuring businesses meet evolving regulatory requirements.
Yes, PEOs are regulated in Mississippi and must comply with the Mississippi Professional Employer Organization Recognition and Registration Act. They must be registered with the Secretary of State and adhere to strict guidelines to ensure legal compliance and financial stability.
A PEO can be especially beneficial for small businesses in Mississippi by offering HR support, payroll services, and employee benefits at reduced rates. It enables small businesses to access enterprise-level services, helping them remain competitive and focus on growth.
Yes, PEOs specialize in compliance support, ensuring adherence to federal and state employment laws in Mississippi. They monitor legislative changes, implement necessary updates, and provide guidance on workplace policies to mitigate compliance risks.
Terminating a relationship with a PEO in Mississippi involves reviewing the terms of the service agreement, providing the required notice period, and transitioning HR responsibilities back in-house or to another provider. PEOs typically assist with offboarding processes to ensure a smooth transition.
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