Missouri businesses must comply with new hire reporting requirements.
While hiring an employee in Missouri can be confusing due to needing to submit paperwork to multiple state and federal agencies, we list the steps you need to follow here.
What are the steps to hiring employees in Missouri?
Step 1 – Register as an Employer
To register as an employer in the state of Missouri, a business will need to:
- Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS)
- Business Tax Registration with the Missouri Department of Revenue
- Employer Registration from the Missouri Department of Labor and Industrial Relations
Step 2 – Collect Employee Paperwork
Employee Eligibility Verification – Every employee hired will need to fill out the I-9 Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. This form confirms citizenship and eligibility to work in the U.S.
Employee Withholding Allowance Certificate – Each employee will need to submit a Withholding Allowance Certificate (IRS W-4 Form) on or before the date of employment to calculate how much federal income tax will be withheld from the employee’s paycheck.
Step 3 – New Hire Reporting Requirements
Once new hire paperwork has been completed, new employees will need to be reported to the Missouri Department of Social Services within 20 days of their hire or rehire date.
The new hire information is required through federal law under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This information is recorded in the State Directory of New Hires and the National Directory of New Hires (NDNH). The new hire reporting process is used in the collection of child support and to locate parents to establish paternity and child support orders.
The employee will provide the employee’s name, home address, Social Security Number, date of birth, and the employee’s date of hire. Employers will provide their Federal Employer Identification Number, business name, address, and contact phone number.
The new hire reporting form takes about 15 minutes to fill out and can be submitted online, by mail:
Missouri Department of Revenue
PO Box 3340
Jefferson City, MO 65105-3340
or by fax: 573-526-8079
Step 4 – Display Labor Law Posters
In addition to new hire reporting requirements, federal rules require small businesses with just one new employee must post certain posters for employees to read.
The Missouri Department of Labor and Industrial Relations offers printable Missouri labor law posters.
Is Workers’ Compensation Insurance required for Missouri employers?
All businesses with employees, even those with a single part-time employee, are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job.
What hiring practices do employers in Missouri need to follow?
Under MO Rev. Stat. Sec. 213, the Missouri Human Rights Act (MHRA) prohibits employers with six or more employees from discrimination based on race, color, religion, national origin, ancestry, sex, age, or disability.
How much does it cost to hire an employee in Missouri?
In addition to the employee’s salary, employers must also pay and withhold tax. Payroll tax reporting is complex and covers multiple agencies. The taxes in
- Federal Income Tax Withholding (employee’s wages)
- State Income Tax Withholding (employee’s wages)
- Social Security & Medicare (FICA) – (half from employer and employee)
- Unemployment Insurance – Unemployment benefits include State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA) (employer)
- Workers’ Compensation Insurance (employer))
How much is minimum wage in Missouri?
Under the Fair Labor Standards Act (FLSA), the 2021 minimum wage in Missouri is $10.30 per hour.