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 has a diverse economy, with strong sectors in agriculture, manufacturing, and healthcare.
The state has a relatively low cost of living compared to many others in the U.S., which can make it attractive for businesses to hire employees.
Mississippi is one of the top producers of catfish and has a significant impact on the global seafood industry.
Employers in Mississippi are subject to the state's "Right-to-Work" laws, meaning that employees cannot be forced to join a union as a condition of employment.
Mississippi has specific employment and labor laws governing working hours, designed to protect employees' rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.
1. Standard Workweek and Overtime
A standard workweek in Mississippi is typically 40 hours, with a regular workday lasting eight hours. Overtime pay is required for non-exempt employees who work over 40 hours per week. Overtime is calculated at 1.5 times the regular hourly rate. The state follows the Fair Labor Standards Act (FLSA) in terms of determining overtime eligibility.
2. Meal and Rest Breaks
Mississippi does not have any state-specific laws requiring employers to provide meal or rest breaks. However, if breaks are provided, they must be paid if they last 20 minutes or less. Longer breaks (over 30 minutes) can be unpaid. Employers are encouraged to offer breaks, but they are not mandated by state law.
As of 2024, the minimum wage in Mississippi is the same as the federal minimum wage, which is $7.25 per hour. There are no specific regional minimum wage rates in Mississippi; the federal minimum wage applies statewide.
Mississippi follows federal overtime laws outlined by the Fair Labor Standards Act (FLSA). This means that most employees must be paid time-and-a-half for any hours worked beyond 40 in a workweek. However, certain employees are exempt from these rules, including executive, administrative, and professional employees who meet specific criteria.
Payroll taxes in Mississippi are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance. Examples of payroll taxes include:
In Mississippi, the payroll cycle is generally bi-weekly or monthly, depending on the employer's preference and industry practices. Employers are required to pay employees at least once per month, but bi-weekly and semi-monthly schedules are more common in certain industries, such as retail and healthcare.
Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Mississippi. Understanding the tax obligations for both employers and employees is crucial when operating in Mississippi’s business landscape.
Mississippi employers are responsible for paying a variety of taxes on behalf of their employees. These include state unemployment insurance (UI) contributions, state workers’ compensation insurance premiums, and the Mississippi income tax withholding. Employer payroll contributions are generally estimated at an additional 10.80% on top of the employee salary in Mississippi.
Mississippi does not have specific requirements for employee benefits, but employers are encouraged to offer competitive benefits packages to attract and retain top talent. Benefits such as health insurance, retirement plans, and paid time off can improve employee satisfaction and retention.
Competitive benefits are essential for attracting and retaining top talent in Mississippi. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Mississippi packages include:
Mississippi does not have a state-mandated paid sick leave policy. However, employers are encouraged to offer paid or unpaid sick leave as part of a benefits package.
Under federal law, employers with 50 or more employees are required to provide up to 12 weeks of unpaid leave for eligible employees under the Family and Medical Leave Act (FMLA).
Employers must provide unpaid leave to employees who are called to active duty or reserve training, and they must reinstate the employee to their position upon return.
Mississippi requires employers to provide employees with time off to vote in a general election, although the time off is unpaid unless specified by company policy.
Employers are required to provide time off for employees serving on jury duty, and employees cannot be fired for participating in jury duty.
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FAQS
Payroll taxes in Mississippi are submitted to the Mississippi Department of Revenue (DOR) and the Mississippi Employment Security Commission (MESC). Employers must register with these agencies and follow their guidelines for tax filing and remittance.
Yes, Mississippi follows the federal minimum wage rate of $7.25 per hour as of 2024. There are no additional state-specific minimum wage laws.
No, employers are not required to offer a 401k in Mississippi. However, providing retirement benefits can help attract and retain talent, and many employers choose to offer 401k plans or other retirement savings options.
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