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Capital City
Jefferson City
Timezone
CT
(
GMT-6
)
Paid Leave
None
Income Tax
0% - 4.8%
Employer Tax
13.65% + Missouri Unemployment Tax
Capital City
Jefferson City
Timezone
CT
(
GMT-6
)
Paid Leave
None
Income Tax
0% - 4.8%
Employer Tax
13.65% + Missouri Unemployment Tax
Missouri offers a relatively low cost of living compared to other states, which can help businesses save on salaries and operating expenses while attracting skilled talent. This can be especially beneficial for remote workers who may expect more affordable living conditions.
Missouri is home to several universities and tech hubs, such as St. Louis and Kansas City, that produce a strong pool of educated and skilled professionals. By hiring remotely, businesses can tap into this talent without geographic limitations.
Missouri has a generally employer-friendly regulatory environment with fewer state-mandated benefits, offering businesses more flexibility in structuring compensation packages and policies for remote workers.
In Missouri, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race. Here are the key things you need to know about hiring in Missouri.
Employers who want to employ will need both an EIN (Employer Identification Number) and a Missouri Payroll Tax Number.
40 hours a week, with 8 hour days being most common.
The standard workweek is typically 40 hours for full-time employees, with 8-hour workdays being common.
There is no state law in Missouri that mandates a probationary period for new employees.
Missouri's minimum wage stands at $12.30 per hour as of January 1, 2024. For tipped employees, employers must pay at least half the standard minimum wage, ensuring that tips make up the difference. Businesses should also check for potential local ordinances that set higher minimum wage rates.
Missouri adheres to the FLSA for overtime. Employees are entitled to 1.5x their regular rate for hours worked beyond 40 in a week. Missouri does not have state-specific daily overtime laws.
Employees may be exempt from overtime if they:
The federal salary threshold for exemption is $684 per week or $35,568 annually.
Missouri Human Rights Act (MHRA), is the primary state law that prohibits discrimination in employment, housing, and public accommodations. Missouri’s anti-discrimination laws protect workers from discrimination based on various characteristics, including race, color, sex, disability, age, and more. Employers with six or more employees are generally subject to these laws.
Missouri law does not dictate a specific payroll cycle. Employers have flexibility in choosing a payroll cycle—weekly, bi-weekly, semi-monthly, or monthly—but they must ensure that employees are paid in a timely manner according to the terms of the employment agreement.
Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Missouri. Understanding the tax obligations for both employers and employees is crucial when operating in Missouri's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Missouri. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.
Missouri employers contribute to Unemployment Insurance, with rates from 0% to 6.75%, or 2.376% for new employers.
Employees in Missouri pay 2% - 4.8% in state income tax, plus federal Social Security and Medicare contributions.
In Missouri, the deadline for filing individual state income tax returns aligns with the federal deadline, typically on April 15. If April 15 falls on a weekend or federal holiday, the deadline is extended to the next business day.
Employers in Missouri are responsible for withholding state income tax based on employees' earnings and filing status. The Unemployment Insurance (UI) tax rate ranges from 0% to 6% on the first $10,500 of wages paid. Quarterly reporting forms, such as MODES-4 and MODES-10, need to be submitted to the Missouri Department of Labor. Additionally, employers must comply with federal payroll tax obligations, including FICA.
In Missouri, pension plans are generally voluntary for most private-sector employees, and there is no state law requiring employers to provide pension plans or other retirement benefits.
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Vacation leave is not mandatory in Missouri. It is entirely up to the employer whether to offer vacation leave.
In Missouri, there are very few mandatory leave entitlements for employees. Unlike some other states, Missouri does not require employers to provide benefits like vacation leave, paid sick leave, or paid family leave.
Missouri Law does not require employers to provide paid time off, vacation leave, or sick leave. It is up to the employer whether to offer PTO as part of their benefits package.
There is no state law that specifically requires employers to provide paid maternity or paternity leave. Employees may have certain protections under federal law, such as the Family and Medical Leave Act (FMLA), which guarantees unpaid leave for qualifying employees.
In Missouri, sick leave is generally governed by employer policies, and there is no state law that requires employers to provide paid sick leave. While Missouri does not require paid sick leave at the state level, some cities in Missouri have local ordinances that require certain employers to provide paid sick leave, specifically: St. Louis and Kansas City
Under both federal and state law, employees in Missouri who are members of the military reserves or National Guard are entitled to leave for military service.
Missouri’s military leave law requires employers to provide unpaid leave for up to 5 years of service (in most cases), with the guarantee that employees can return to their jobs once they return from military service.
An employee may take time off from work to serve on a jury, but whether the leave is paid or unpaid is up to the employer’s discretion or company policy. Missouri law does not mandate that employers pay employees while they are on jury duty.
Missouri requires workers' compensation insurance for businesses with five or more employees, or one employee in construction. There are no state mandates for paid sick leave or health insurance, but businesses with 50 or more employees must follow the federal Affordable Care Act (ACA). Providing benefits like vacation time, health insurance, and parental leave is a standard practice to stay competitive.
Competitive benefits are essential for attracting and retaining top talent in Missouri. 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 Missouri packages include:
In Missouri, employers are not required by state law to provide health insurance to their employees.
However, under Federal laws the Affordable Care Act (ACA) does require certain employers to provide health insurance to their employees, depending on the size of the company and other factors. Large employers are required to offer health insurance to their employees if they have 50 or more full-time equivalent employees during the previous calendar year.
Whether part-time employees receive benefits depends on the employer's policies and the type of benefit in question. In Missouri, part-time employees generally do not have a legal right to employer-provided benefits unless specified by the employer or under specific federal or state regulations.
Employers in Missouri are not required to offer 401(k) plans or other retirement savings options.
Missouri is an at-will employment state, meaning that, unless otherwise specified in an employment contract, either the employer or the employee can end the employment relationship at any time, with or without cause, and with or without notice.
There is no requirement for either the employer or employee to provide notice before terminating the employment relationship unless it is stipulated in an employment contract or collective bargaining agreement.
Missouri does not require employers to provide severance pay to employees when they are laid off or terminated. It is not mandated by state law.
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