Payroll Missouri: Employer Tax and Software Guide
Missouri payroll for employers: Form MO W-4, the $9,000 unemployment base, Kansas City and St. Louis earnings taxes, and 10 providers compared on price.
Missouri Payroll: The Employer Guide
A falling income tax and the lowest unemployment base in the country, sitting alongside a statutory pay frequency rule and two city earnings taxes
Missouri looks like a cheap state to run payroll in, and on two measures it genuinely is. The top income tax rate is 4.7 percent and falling under a revenue-trigger schedule, and the unemployment wage base dropped to $9,000 for 2026, which is among the lowest in the country and close to the federal floor.
Three things complicate that picture. Kansas City and St. Louis each levy their own earnings tax, and St. Louis adds a separate tax paid by the employer on top. State law requires most employers to pay wages at least twice a month, which is not a scheduling preference but a statutory obligation. And the minimum wage reached $15.00 in January, higher than Pennsylvania, Virginia, or Nevada.
This guide covers what Missouri actually requires, the two city taxes that catch employers in the metros, and how 10 payroll providers price the work at 5, 15, and 50 employees.
What Missouri actually requires from employers
Four obligations sit on top of federal payroll, and two of them are genuinely light while two are the reason people get this wrong.
State income tax withholding and Form MO W-4
Missouri uses eight graduated brackets running from zero up to 4.7 percent. The structure is unusual in that the same bracket thresholds apply to every filing status, and only the standard deduction changes. The top rate begins at $9,436 of Missouri taxable income for 2026, which means most full-time employees reach 4.7 percent on the bulk of their wages despite the graduated appearance.
| Filing status on Form MO W-4 | 2026 standard deduction | Change from 2025 |
|---|---|---|
| Single, Married Filing Separate, Married with spouse working | $16,100 | Up from $15,000 |
| Married, spouse does not work | $32,200 | Up from $30,000 |
| Head of Household | $24,150 | Up from $22,500 |
Two changes worth catching. Form MO W-4 no longer uses numerical allowances at all: the calculation runs off filing status, which selects the standard deduction, with optional additional or reduced withholding on top. And the federal tax deduction step that appeared in earlier versions of the withholding formula was removed for 2026, so a payroll system still subtracting federal withholding before applying the Missouri brackets will produce the wrong number. Supplemental wages paid separately may be withheld at a flat 4.7 percent.
Unemployment insurance
Paid entirely by the employer through the Division of Employment Security, with nothing withheld from employees. The wage base moved down rather than up for 2026, which is unusual enough to be worth flagging.
| Item | 2026 figure | Notes |
|---|---|---|
| Taxable wage base | $9,000 | Down from $9,500 in 2025; statute floors it at $7,000 and caps it at $13,000 |
| New employer rate | 2.376% | Unchanged since 2024 |
| New nonprofit rate | 1% | Applies to qualifying nonprofit organizations |
| Experienced employer range | 0% to 6% | Before any maximum rate surcharge or contribution rate adjustment |
The direction of the change is the practical point. A payroll system carried over from 2025 without updating will keep collecting on $9,500 and over-remit by $500 of wage base per employee multiplied by your assigned rate. Verify the figure rather than assuming it rolled forward. Our guide to state unemployment tax covers how the bases compare nationally.
Minimum wage
$15.00 per hour since January 1, 2026, up from $13.75. Voters approved Proposition A in November 2024, and House Bill 567, signed July 10, 2025, kept the rate while removing the Consumer Price Index adjustment that would have started in 2027 and repealing the statewide paid sick leave mandate. The tipped minimum is $7.50 with the employer covering any shortfall to $15.00. Retail and service businesses with gross annual income under $500,000 may fall outside the state rate, though federal minimum wage rules still apply.
New hire reporting
New and rehired employees must be reported to the Missouri new hire program within 20 calendar days of hire. Most full-service payroll plans file it automatically and self-service tiers generally do not. See our guide to new hire reporting for what the report must contain.
The two city earnings taxes
Missouri has no county income taxes and no township levies. It has exactly two cities with local income tax, and if none of your employees live or work in either one, this section does not apply to you at all.
| Tax | Rate | Who pays | Filing |
|---|---|---|---|
| Kansas City earnings tax | 1% | Withheld from residents and non-residents working in the city | Revenue Division, City of Kansas City |
| St. Louis earnings tax | 1% | Withheld from residents and non-residents working in the city | Form W-10, Collector of Revenue |
| St. Louis payroll expense tax | 0.5% | Paid by the employer, not withheld | Form P-10, filed with the W-10 |
The St. Louis payroll expense tax is the piece most often missed, because it behaves differently from everything around it. It is not a withholding, it is an employer cost on gross compensation paid for work in the city, and it is filed quarterly alongside the earnings tax. A business that correctly withholds the 1 percent and never files the P-10 has satisfied half the obligation.
Both city taxes require voter reauthorization every five years under state law and have been renewed at every vote to date. Non-residents who work only partially inside city limits apportion their income, so only wages attributable to days actually worked in the city are subject.
The pay frequency rule that catches new employers
Most states leave pay frequency to the employer. Missouri does not for a large share of businesses, and this is the requirement most likely to be discovered after the fact.
| Employer or employee type | Required frequency | Timing |
|---|---|---|
| Corporations, most employees | At least twice per month | Within 16 days of the close of the pay period |
| Executive, administrative, professional | Monthly permitted | Standard monthly cycle acceptable |
| Commission sales staff | Monthly permitted | Standard monthly cycle acceptable |
| Terminated employee | Day of discharge | Final wages due immediately on termination |
The consequence for software selection is direct. A monthly payroll cycle is not available to most Missouri corporations, so any provider that charges per payroll run rather than a flat monthly fee costs at least twice what a monthly-cycle comparison would suggest. Nearly all the providers below include unlimited runs, but it is worth confirming rather than assuming, particularly with quote-based vendors where run-based pricing occasionally appears. Our guide to pay periods in a year covers how the cycles compare.
10 payroll providers for Missouri employers compared
Every provider below files Missouri state withholding and unemployment. The column that separates them in practice is whether the Kansas City or St. Louis earnings tax is handled, which is not universal.
| Provider | Best For | Starting Price | Pricing Model | MO Filing | Multi-State Included | Onboarding Tools | Trial |
|---|---|---|---|---|---|---|---|
| OnPay | All-in pricing, every state | $49 + $6/ee | Base + PEPM | 1 month | |||
| Gusto | First payroll purchase | $49 + $6/ee | Base + PEPM | Until 1st run | |||
| Patriot | Lowest cost, single locality | $37 + $5/ee | Base + PEPM | 30 days | |||
| QuickBooks | Books already in QuickBooks | $50 + $6.50/ee | Base + PEPM | 30 days | |||
| SurePayroll | Micro and household employers | $29 + $7/ee | Base + PEPM | Varies | |||
| Square | Retail and food service | $35 + $6/ee | Flat + PEPM | Free trial | |||
| Paylocity | Growing past 50 employees | Quote | Quote | Demo | |||
| ADP RUN | City tax depth under 50 staff | ~$79 + $4/ee | Quote | 3 months | |||
| Paychex Flex | A person to call about a notice | Quote | Quote | Varies | |||
| Rippling | Payroll tied to HR and IT | $35 + $8/ee+ | Modular PEPM | Demo |
OnPay
One plan at $49 per month plus $6 per employee with every feature included and no tier to climb. Tax filing covers all 50 states with no multi-state surcharge, which matters in a state bordered by eight others and holding reciprocity with none of them. Year-end W-2 and 1099 filing is included and the first month is free without a credit card.
Gusto
The most common first payroll purchase for US small businesses. Tax filing runs automatically across federal, state, and local jurisdictions, year-end processing carries no extra charge, and the Simple plan runs $49 per month plus $6 per employee after a March 2026 base increase.
The Missouri catch is that Simple covers single-state payroll only. Given that the Kansas City metro straddles the Kansas line and the St. Louis metro reaches into Illinois, one cross-border hire moves the account to Plus at $80 plus $12 per employee.
Patriot Software
The cheapest legitimate full-service payroll at $37 per month plus $5 per employee, covering federal, state, and local tax filing plus new hire reporting. Basic at $17 plus $4 calculates only and leaves depositing and filing to the employer. Unlimited payroll runs matter more than usual here given the twice-monthly requirement.
Additional state filings cost $12 per month each. For a single-state Missouri business outside Kansas City and St. Louis, nothing else comes close on cost.
QuickBooks Payroll
Core runs $50 per month plus $6.50 per employee with full-service tax filing on every tier, following a per-employee price increase across the Workforce plans on July 1, 2026. The reason to pick it is unchanged: if the books already live in QuickBooks Online, payroll entries land in the general ledger with no export step.
SurePayroll
Owned by Paychex and aimed at very small and household employers at roughly $29 per month plus $7 per employee. The distinguishing feature is a flat $9.99 monthly multi-state fee regardless of how many states are involved, which beats per-state pricing for anyone operating across two or three of Missouri's many borders.
Square Payroll
Full-service payroll at $35 per month plus $6 per person paid, with tax filing included. For a Missouri restaurant or retail business already running Square point of sale, hours and tips flow into payroll with nothing to configure. That matters here because the tipped minimum requires the employer to top up to $15.00 whenever tips fall short, which needs accurate hour and tip data every period.
Paylocity
A full HR and payroll platform aimed above the smallest end of the market, with strong multi-jurisdiction handling and a well-regarded self-service experience. For a Missouri company crossing 50 employees or operating on both sides of a metro state line, it becomes a reasonable candidate. Pricing is quote-only.
ADP RUN
The deepest tax compliance operation in the category, and in Missouri that depth applies specifically to the city earnings taxes and the multi-state registrations that the metros generate. Third-party estimates put the Essential tier near $79 per month plus $4 per employee, but ADP does not publish rates and most buyers report paying more once add-ons land.
Paychex Flex
A service relationship rather than a software subscription, with a named contact at higher tiers. Pricing is quote-only, and quarterly administrative charges are a recurring theme in customer reports. The Missouri argument is concrete: when a St. Louis payroll expense tax notice arrives for a filing nobody knew existed, having someone to call has real value.
Rippling
A unified employee record where payroll, HR, and IT provisioning share one data model, starting at $35 per month plus $8 per employee for the core platform with payroll as a separate module. Real configurations land well above the headline figure. Multi-state registration runs inside the same workflow, which is genuinely useful in the border metros, but the platform is overbuilt for a small single-location Missouri business.
What each provider actually costs a Missouri employer
The table below models published rates at three headcounts plus the second-state column, which carries unusual weight here because Missouri borders eight states and has reciprocity with none of them.
| Provider | 5 employees | 15 employees | 50 employees | 2nd State Cost | Notes |
|---|---|---|---|---|---|
| Patriot Full Service | $62 | $112 | $287 | $12/mo per extra state | Confirm city tax handling |
| SurePayroll | $64 | $134 | $379 | $9.99/mo flat | Micro-employer focus |
| Square Payroll | $65 | $125 | $335 | Included | Strong for hourly staff |
| OnPay | $79 | $139 | $349 | Included | No tier to climb |
| Gusto Simple | $79 | $139 | $349 | Forces Plus tier | A Kansas or Illinois hire changes this |
| QuickBooks Core | $83 | $148 | $375 | Fee per extra state | General ledger sync |
| ADP RUN Essential | ~$99 | ~$139 | ~$279 | Quote | Deepest local tax coverage |
Two patterns hold. The budget providers stay genuinely cheaper at every headcount, with Patriot at 50 employees costing less than most competitors at 25. And the second-state column matters more in Missouri than in most states, because both major metros cross a border: Kansas City reaches into Kansas and St. Louis into Illinois. Gusto Simple is competitive until one such hire forces the Plus tier, at which point a 15-person payroll jumps from $139 to $260. For a wider view, see the payroll software for small business comparison and the payroll pricing guide.
Choosing a payroll provider for Missouri
Four questions separate providers that will work here from providers that will generate notices.
Beyond the payroll engine, the requirement most commonly missed is the 20-day new hire report. Most full-service plans file it automatically and Basic tiers generally do not, which leaves a deadline running on every hire.
Before you choose
FirstHR does not process payroll, file payroll taxes, or administer benefits. Every provider above does something we do not, and if payroll is the problem you are solving, one of them is your answer.
What we handle is the layer underneath, and Missouri puts two specific demands on it. Correct withholding depends on a Form MO W-4 that was actually collected, since the federal form is not accepted and the filing status on it drives the entire calculation. And same-day final pay on termination means the offboarding conversation and the payroll run have to happen together rather than a week apart. FirstHR covers onboarding workflows, e-signatures, document collection, and employee records for US teams of 5 to 50 people at a flat $98 to $198 per month. If the recurring failure is paperwork arriving late or incomplete rather than the tax math, that is a different problem than payroll processing, and it is the one we built for.
Frequently Asked Questions
What payroll taxes do Missouri employers withhold?
State income tax on eight brackets topping out at 4.7 percent, calculated after a standard deduction set by filing status on Form MO W-4, plus a 1 percent city earnings tax where employees live or work in Kansas City or St. Louis. Employers separately pay unemployment on the first $9,000 of wages, and St. Louis employers pay a 0.5 percent payroll expense tax.
Does Missouri have a state W-4 form?
Yes, Form MO W-4, and the federal W-4 is not accepted for Missouri withholding. It no longer uses numerical allowances: filing status drives the standard deduction, which for 2026 is $16,100, $32,200, or $24,150 depending on status. Additional or reduced withholding can still be requested on the form.
What is the Missouri unemployment wage base?
$9,000 per employee for 2026, down from $9,500, with statute setting a floor of $7,000 and a ceiling of $13,000. New employers pay 2.376 percent and qualifying nonprofits 1 percent, while experienced employers fall between zero and 6 percent before any surcharge.
Who pays the Kansas City and St. Louis earnings tax?
Both cities charge 1 percent to residents and to non-residents on income earned in the city, withheld and remitted by the employer. St. Louis adds a separate 0.5 percent payroll expense tax paid by the employer, filed on Form P-10 with the W-10. These are the only local income taxes in Missouri.
How often must Missouri employers pay employees?
Corporations must pay at least twice per month within 16 days of the pay period close. Executive, administrative, professional, and commission sales employees may be paid monthly. A terminated employee is owed final wages on the day of discharge.
What is the Missouri minimum wage?
$15.00 per hour since January 1, 2026. House Bill 567 kept the rate set by Proposition A while removing the Consumer Price Index adjustment scheduled for 2027 and repealing the statewide paid sick leave mandate. The tipped minimum is $7.50 with employer top-up to the full rate. See our guide to the tipped minimum wage.
Does Missouri have reciprocal tax agreements with other states?
No, with none of its eight neighbors. An employee living in Kansas or Illinois and working in Missouri has Missouri tax withheld on Missouri-source wages, and resolves any double taxation through a credit on their home state return rather than through payroll.
How much does payroll software cost for a Missouri small business?
At 5 employees, published July 2026 rates run roughly $62 for Patriot Full Service, $64 for SurePayroll, $65 for Square Payroll, $79 for OnPay or Gusto Simple, and $83 for QuickBooks Core. At 50 employees the same plans land between $287 and $375. ADP RUN, Paychex Flex, and Paylocity quote individually.