Remote Work Resources (2024)

Welcome to the Missouri Department of Revenue’s alternative remote work resource page for employers and individuals. Many people have recently transitioned from working in the office to working remotely. This transition may have changed the tax obligations for some individuals and employers. The Department has created this convenient resource to provide you with the most up-to-date information and to help answer your questions about alternative remote work.

Resources for Employers

Frequently Asked Questions

How do I compute the amount of tax to withhold from my wages?

First, you must collect a complete Form W-4 from your relevant employees. This information will help calculate the appropriate amount of tax to withhold. To do this, you can calculate the tax amount manually by using the Tax Formula or electronically calculate it by using the Withholding Tax Calculator.

For additional information, refer to the Maintain Employer Withholding Tax web page.

Withholding Calculator

The Missouri Department of Revenue Online Withholding Calculator is provided as a service for employees, employers, and tax professionals.

• Employees can use the calculator to do tax planning and project future withholdings and changes to their Missouri Form W-4.
• Employers can use the calculator to easily look up withholding tax rather than looking them up manually with tables.
• Tax Professionals can use the calculator when testing new tax software or assisting with tax planning.

I have an employee who works in several states, including Missouri. Am I required to withhold Missouri tax from this employee’s wages?

Yes. An employer is required to withhold Missouri tax from all wages paid to an employee in exchange for services the employee performs for the employer in Missouri.

When the employee has performed services in Missouri and at least one other state, the employer must perform a special three-part calculation to ensure an appropriate amount of Missouri wages are withheld. The steps are as follows:

1. The employer should determine the amount that would be withheld if all wages were subject to Missouri withholding (see the Missouri Withholding Table).
2. Next, determine what percentage of this amount is subject to Missouri withholding by dividing the wages subject to Missouri withholding tax by the total wages reported for federal purposes.
3. Lastly, multiply the number from the first step by the percentage from the second step. The final result is the amount that the employer must withhold.

For additional information, refer to the withholding tax frequently asked questions web page.

I am an employer located in another state, but I have employees who work in Missouri. Are the wages I pay to these employees subject to Missouri withholding?

Yes. If you have employees performing services for wages in Missouri, those wages are subject to Missouri withholding regardless of where the employer is located.

For additional information, refer to the withholding tax frequently asked questions web page.

I am a Missouri Employer but I have nonresident employees who work in a state other than Missouri. Am I obligated to withhold Missouri tax from these employee’s wages?

No. If a non-resident employee performs all of their services outside of Missouri, the wages paid to that employee are not subject to Missouri withholding.

For additional information, refer to the withholding tax frequently asked questions web page.

I have an employee who is not a resident of Missouri but performs services for wages in Missouri. Are the wages I pay to this employee subject to Missouri withholding?

Yes. Withholding is determined by the location where the employee performs services in exchange for wages. If the wages are for services performed in Missouri, then Missouri withholding is required.

For additional information, refer to the withholding tax frequently asked questions web page.

Are the wages I pay to employees in Missouri for "alternative remote work" subject to Missouri withholding?

Yes. Any time an employee is performing services for an employer in exchange for wages in Missouri, those wages are subject to Missouri withholding. This applies in the case of “remote work” where an employee is located in Missouri and performs services for the employer on a remote basis.

This rule also applies even if the service for which the employee is receiving wages is “standing down” (i.e., when the employer instructs the employee not to work but the employee is still being paid).

For additional information, refer to the withholding tax frequently asked questions web page.

If an overpayment was made before W-2(s) were issued, what documentation is needed to correct this?

If an error was made, complete an Employer’s Withholding Tax Income Return (Form MO-941) with the amended box on the top right corner marked for each period to be adjusted. This box should be checked to correct a previously filed return to indicate an increase or decrease in the amount of tax liability. You must also provide a copy of the payroll ledger if the error was found before a W-2 was issued.

To receive a refund of the overpayment, attach the Employer’s Refund Request (Form 4854). If no form is attached, the overpayment(s) generated will remain as credit(s) on the account.

*Note: if an overpayment has been authorized, the overpayment is subject to be used as an offset towards any debt.

Before submitting the form(s), ensure proper documentation is attached and the Form MO-941 contains a signature for Department processing.

Any changes to the (Form MO-941 previously filed cannot be submitted via the online filing process and must be submitted to the Department via mail, fax or email (see below for contact information).

Email: Withholding@dor.mo.gov

Fax: (573) 522-6816

For additional information, refer to the withholding tax frequently asked questions web page.

I have an employee who is a Missouri resident working in another state and they have given me a Form MO W-4C (Withholding Affidavit for Missouri Residents). What does this document require me as an employer to do?

An employer who receives a completed Form MO W-4C (Withholding Affidavit for Missouri Residents) is required to perform withholding from the wages of the employee based on the percentage stated on the form.

For example, if the employee states that all of their services for the employer are being performed in a state other than Missouri, and the employer is withholding tax from the employee’s wages for that state, then the employer is required to withhold in accordance with the form. Likewise, if the employee states that a percentage of their services for wages are being performed in Missouri, the employer is required to withhold from that employee’s wages at that percentage using the following formula:

First, determine the amount that would be withheld if all the wages were subject to Missouri withholding by using the Missouri Withholding Table. Then multiply this amount by a percent which is determined by dividing the wages subject to Missouri withholding tax by the total wages reported for federal purposes.

For additional information, refer to the withholding tax frequently asked questions web page.

I withheld Missouri taxes for one of my employees and I should have withheld taxes for another state. What should I do?

Reimburse the employee for the taxes withheld in error and complete an Employer’s Withholding Tax Income Return (Form MO-941) with the amended box on the top right corner marked for each period to be adjusted. This box should be checked to correct a previously filed return to indicate an increase or decrease in the amount of tax liability.

You must attach one of the following as proper documentation for verification of changes made:

• A copy of the payroll ledger if the error was found before a W-2 was issued.
• A copy of the W-2C(s) if the error was found after the original W-2 was submitted.
• A copy of the original 10-99-R and a copy of the corrected 1099-R.

To receive a refund of the overpayment, attach the Employer’s Refund Request (Form 4854). If no form is attached, the overpayment(s) generated will remain as credit(s) on the account.

*Note: if an overpayment has been authorized, the overpayment is subject to be used as an offset towards any debt.

Before submitting the form(s), ensure proper documentation is attached and the Form MO-941 contains a signature for Department processing.

Any changes to the Form MO-941 previously filed cannot be submitted via the online filing process and must be submitted to the Department via mail, fax or email (see below for contact information).

Email: Withholding@dor.mo.gov

Fax: (573) 522-6816

For additional information, refer to the withholding tax frequently asked questions web page.

If an error was made, complete an Employer’s Withholding Tax Income Return (Form MO-941) with the amended box on the top right corner marked for each period to be adjusted. This box should be checked to correct a previously filed return to indicate an increase or decrease in the amount of tax liability.

Overpayment Periods:

You must attach one of the following as proper documentation for verification of changes made:

• A copy of the payroll ledger if the error was found before a W-2 was issued.
• A copy of the W-2C(s) if the error was found after the original W-2 was submitted.
• A copy of the original 10-99-R and a copy of the corrected 1099-R.

To receive a refund of the overpayment, attach the Employer’s Refund Request (Form 4854). If no form is attached, the overpayment(s) generated will remain as credit(s) on the account.

*Note: if an overpayment has been authorized, the overpayment is subject to be used as an offset towards any debt.

Additional Tax Owed Period(s):

If you underreported your Missouri withholding tax on your original Form MO-941 return, attach a check to the amended Form MO-941 and mail to:

Missouri Department of Revenue
PO Box 999
Jefferson City, MO 65101-3375

*Note: if the additional tax liability is reported after the period(s) due date, interest and penalty will apply to the underreported portion.

To calculate additions to tax and interest, use our Online Additions to Tax and Interest Calculator.

Any changes to the Form MO-941 previously filed cannot be submitted via the online filing process and must be submitted to the Department via mail, fax or email (see below for contact information).

Email: Withholding@dor.mo.gov

Fax: (573) 522-6816

For additional information, refer to the withholding tax frequently asked questions web page.

Credits and Refunds

Employers may visit https://mytax.mo.gov to view current credits on their account and complete a Refund Request Form.

If an employer has mistakenly overpaid on a return and the credit is not shown on the Online Credit Inquiry System, an Employer’s Withholding Tax Return Correction (Form MO-941) must be filed first.

Employers may elect to take any approved overpayment as a credit on a future return by indicating the amount on line 3 of Form MO-941.

For additional information, refer to the Maintain Employer Withholding Tax web page.

What documentation is needed if I am claiming an overpayment on an amended
Form MO-941?

You must attach one of the following as proper documentation for verification of changes made:

• A copy of the payroll ledger if the error was found before a W-2 was issued.
• A copy of the W-2C(s) if the error was found after the original W-2 was submitted.
• A copy of the original 10-99-R and a copy of the corrected 1099-R.

Any changes to the Form MO-941 previously filed cannot be submitted via the online filing process and must be submitted to the Department via mail, fax or email (see below for contact information).

Email: Withholding@dor.mo.gov

Fax: (573) 522-6816

For additional information, refer to the withholding tax frequently asked questions web page.

Resources for Employees

Frequently Asked Questions

Am I required to file a Missouri return?

You do not have to file a Missouri return if you are not required to file a federal return.

If you are required to file a federal return, you must file a Missouri return unless:

• You are a resident and have less than $1,200 of Missouri adjusted gross income;
• You are a nonresident with less than $600 of Missouri income; OR
• Your Missouri adjusted gross income is less than the amount of your standard deduction plus your exemption amount.

Note: If you are not required to file a Missouri return, but you received a W-2 form stating you had Missouri tax withheld, you must file a Missouri return to get a refund of your Missouri withholding. If you are not required to file a Missouri return and you do not anticipate an increase in income, you may change your W-4 form to "exempt" so your employer will not withhold Missouri tax.

For additional information, refer to the Individual Income Tax FAQs web page.

I am a resident of Kansas. I am performing "alternative remote work" at my residence in Kansas for a Missouri-based employer. Am I obligated to withhold Missouri tax from my wages?

No. If a nonresident employee performs all of his or her services outside of Missouri, the wages paid to that employee are not subject to Missouri withholding.

For additional information, refer to the Individual Income Tax FAQs web page.

My residency is outside of Missouri. I am performing "alternative remote work" for my Missouri-based employer. Am I obligated to withhold Missouri tax from my wages?

No. If a non-resident employee performs all of his or her services outside of Missouri, the wages paid to that employee are not subject to Missouri taxes.

For additional information, refer to the withholding tax frequently asked questions web page.

I am a Missouri resident who earns income in another state and pays income tax to the other state. How must I report my income to Missouri?

If you are a full-year or part-year Missouri resident and earn income from another state, you must include all income on your Form MO-1040. You may be entitled to claim a credit against your Missouri tax liability for the income taxes paid to the other state. To determine your allowable credit, complete Form MO-CR(Credit for Income Taxes Paid to Other States). You must include a copy of the other state's return.

If you are a part-year Missouri resident filing as a nonresident, you must include the other state's income on your Form MO-1040. You may be entitled to reduce your Missouri tax liability. To determine the income tax you must pay to Missouri, complete Form MO-NRI(Missouri Income Percentage) and include a copy of your federal return.

For more information, refer to the Resident/Nonresident and Military Status pages. Additional information is available on the Individual Income Tax FAQs web page.

How should my income be reported to Missouri if I am a resident of another state and work in Missouri but also travel to various other states?

You must include all income on your Missouri return. If you perform services partly within and partly out of the state, only the wages you are paid for the services performed within Missouri are subject to Missouri income tax. The Form(s) W-2 issued to you from your employer(s) should indicate the state in which the wages were paid, along with the wages you earned in that state. You must allocate your Missouri source income on Form MO-N RI and complete Form MO-1040. You must include a copy of your federal return with your state return. Interstate transportation employees who regularly travel and perform duties in more than one state, may only be taxed by their state of residence. For more information regarding interstate transportation employees, you may download the State of Missouri Employer's Tax Guide.

For more information, refer to the Resident/Nonresident and Military Status pages. Additional information is available on the Individual Income Tax FAQs web page.

I was a part-year Missouri resident. When completing my income tax return, should I complete Form MO-CR or Form MO-NRI, so I am only taxed on the income I earned in Missouri?

Taxpayers who were part-year Missouri residents can complete either Form MO-CR (Credit for Income Taxes Paid to Other States) or Form MO-NRI (Missouri Income Percentage):

• Form MO-CR should be completed if you are a part-year resident filing as a resident. A copy of the other state's return is required.
• Form MO-NRI should be completed if you were a part-year resident filing as a nonresident. A copy of your federal return is required.

For more information, including how to determine if you are a resident or nonresident of Missouri for tax purposes, refer to the Resident/Nonresident and Military Status pages.

Additional information is available on the Individual Income Tax FAQs web page.

I am a nonresident. What form do I need?

You need Form MO-1040.

For more information, refer to the Resident/Nonresident and Military Status pages.

For additional information, refer to the Individual Income Tax FAQs web page.

What filing options and forms are available to file my income tax return?

Missouri offers the following filing options:

• Electronic Filing (e-filing of your state and federal return)
• 2-D Barcode Filing (Filing your state paper return using a barcode)
• Paper Short Forms-MO-1040A
• Paper Long Form-MO-1040

Remember: No matter what method you choose, the due date for the 2020 Missouri Individual Income Tax Return is extended from April 15, 2021 toMay 17, 2021.Learn more about the extension.

If you choose to file a paper return, you can use our Tax Form Selector to find out which form is right for you. The form selector will guide you through a series of brief questions and recommends the easiest form to file.

For Individual Income Tax Forms, click here.

For additional information, refer to the Individual Income Tax FAQs web page.

If I am unable to file my return by the due date, can I get an extension?

If you receive an extension of time to file your federal income tax return, you will automatically be granted an extension of time to file your Missouri income tax return. Attach a copy of your federal extension (Federal Form 4868 or 2688) with your Missouri income tax return when you file.

However, an extension of time to file does not extend the time to pay. If you expect to owe income tax, file Form MO-60 with your payment by the original due date of the return. A 5 percent addition to tax penalty will apply if the tax is not paid by the original due date, provided your return is filed by the extension due date.

For additional information, refer to the Individual Income Tax FAQs web page.

I am a resident of Kansas City, Missouri, with a question about the earnings tax. Can the Department of Revenue answer my question?

The City of Kansas City, Missouri, imposes an earnings tax on residents which is not administered by the Missouri Department of Revenue. Questions may be directed to the City of Kansas City as follows:

Finance Department - Revenue Division
City Hall, 2^nd floor
414 E. 12^th St.
Kansas City, MO 64106

Phone: (816) 513-1120

Email: revenue@kcmo.org

I am a resident of the City of St. Louis, Missouri, with a question about the personal earnings tax. Can the Department of Revenue answer my question?

The City of St. Louis, Missouri, imposes a personal earnings tax on residents which is not administered by the Missouri Department of Revenue. Questions may be directed to the City of St. Louis as follows:

Collector of Revenue
Earnings Tax Department

City Hall, Room 410
1200 Market St.
St. Louis, MO 63103

Phone: (314) 622-3291

Email: collectorinfo@stlouis-mo.gov

If you cannot find the information you are looking for on this page, please contact the Department for further assistance.