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Covers Missouri employer payroll obligations, including graduated state income tax withholding, unemployment insurance on a state wage base and new hire reporting. Also explains the city earnings taxes that apply in Kansas City and Saint Louis.
Missouri employers withhold graduated state income tax, with a top marginal rate of 4.7% for 2025, and pay unemployment insurance on the first $9,500 per employee. Employers in St. Louis and Kansas City also withhold local earnings taxes.
Missouri requires employer unemployment insurance (UI/SUTA) contributions, new-hire reporting, and municipal earnings or payroll taxes in some cities. The state's voter-approved paid sick leave and minimum wage changes from 2024-25 were the subject of litigation and subsequent legislative action. The Department of Labor and Industrial Relations and the Division of Employment Security are the primary state employer resources.
Missouri does not have widespread local payroll taxes, but two cities require special attention: St. Louis and Kansas City. Outside these cities, most Missouri municipalities do not levy earnings or payroll taxes, but employers should verify whether local business or license taxes apply where they operate.
| City | Employer obligation |
|---|---|
| St. Louis | Withhold a 1.0% earnings tax from employees who live in the city or perform work there, and pay a separate 0.5% payroll expense tax on wages earned in the city. Register with the City Collector of Revenue, and file and remit both the employee withholding and the employer tax according to city deadlines. |
| Kansas City | An earnings tax applies to residents on all earnings and to nonresidents who work in the city. Employers are responsible for withholding the tax, registering with the city's tax department, and complying with mandatory e-filing rules that took effect in 2025. |
| Topic | Missouri rule |
|---|---|
| Overtime | Missouri employers must follow the federal FLSA overtime rules — time-and-a-half for non-exempt employees for hours worked over 40 in a workweek — and must comply with any state statute or regulation that is more protective than federal law. Missouri DOL guidance points employers to the FLSA as the baseline for overtime. |
| Rest and meal breaks | Missouri does not require private-sector employers to provide paid meal or rest breaks beyond federal FLSA rules. Short breaks, typically around 20 minutes, are compensable if provided. Document any break policies and follow sector-specific rules. |
| Final pay at termination | Missouri law requires payment of wages due when an employee is discharged or terminated; Department of Labor guidance indicates discharged employees should be paid immediately, and employers may mail wages on request within statutory timeframes. If an employee quits, Missouri law does not specify a required timing rule — wages should be paid by the next regularly scheduled payday unless company policy or agreement provides otherwise. |
| Pay frequency | Missouri statute (RSMo section 290.080 and related sections) requires corporations and many employers to pay employees as often as semi-monthly and within sixteen days of the close of each payroll period, with statutory exceptions for certain employees such as executive, administrative, professional or commission-paid employees. Payroll schedules and pay stubs must meet the statute's timing and recordkeeping requirements. |
| Wage deductions and garnishments | Follow Missouri statutes and federal law for wage assignments, garnishments and allowable deductions. Honor court-ordered garnishments such as child support, and follow Missouri calculation rules and federal limits. See RSMo and Division of Labor guidance for procedures and forms. |
| Recordkeeping and notices | Keep payroll, time and tax records per Missouri statute and federal FLSA requirements. Display required notices and posters — minimum wage summaries, wage statements and city posters for local ordinances such as St. Louis earnings tax notices — where required. |
Generally, no child under 14 may be employed, with exceptions for limited categories such as entertainment, newspaper delivery, babysitting and occasional yard work. 14- and 15-year-olds need work certificates and have restricted hours during school sessions. Employees 16 and older may work broader hours, but federal hazardous-occupation rules still apply. Follow Missouri youth employment rules on hours, permits and allowable occupations.
As of this update, the earned paid sick time law that voters approved in 2024 is no longer required to remain in force beyond the repeal effective date; the state Department of Labor and Industrial Relations has published the repeal action and related FAQs. Employers may continue to offer paid sick leave voluntarily and must honor any leave lawfully accrued while the now-repealed law was in effect. Track accruals for time worked between the effective accrual window and the repeal date, and monitor MO DOL guidance for further changes or constitutional amendment activity.
Important: If you maintained accruals under the voter-approved law earlier in 2025, make sure payroll pays out or preserves accrued and used balances consistent with MO DOL guidance for leave accrued through the effective repeal date.
Note: This overview reflects state guidance as of 09/16/2025. Confirm current rates, wage bases and deadlines with the agencies above before running payroll.
The Missouri UI taxable wage base for calendar year 2025 is $9,500 per employee. The 2025 new-employer SUTA rate is generally 2.376% for most employers, or 1.00% for some nonprofits and special classes, while experienced employer rates vary by experience rating.
St. Louis and Kansas City. In St. Louis, employers withhold a 1.0% earnings tax from employees who live in the city or perform work there and also pay a separate 0.5% employer payroll expense tax on wages earned in the city. Kansas City imposes an earnings tax on residents and on nonresidents who work in the city, which employers must withhold.
Missouri's state minimum wage is $13.75 per hour effective January 1, 2025. Employers may pay tipped employees a cash wage equal to 50% of the state minimum, which is $6.875 per hour for 2025, but tips plus cash wage must equal at least $13.75 per hour or the employer must make up the difference.
Missouri requires employers to report all new hires and rehires within 20 days to the state new-hire registry through the Missouri Employer portal.
Missouri law requires wages due to be paid when an employee is discharged, and Department of Labor guidance indicates discharged employees should be paid immediately, with wages mailed on request within statutory timeframes. When an employee quits, Missouri law does not specify a timing rule, so wages should be paid by the next regularly scheduled payday unless company policy or an agreement provides otherwise.