04-P-027 Missouri State Withholding (Supersedes 03-p-025)
|DATE:||January 16, 2004|
|SUBJECT:||Missouri State Withholding|
|EFFECTIVE DATE:||January 1, 2004|
|CONTACT:||Roger Basinger||(785) 296-5387||Roger.Basinger@da.state.ks.us|
|SUMMARY:||Change in Missouri State Withholding Tax Formula for 2004|
The Missouri Department of Revenue has made changes to the Missouri Withholding Tax Formula effective January 1, 2004. The following table is a list of current filing statuses and the standard deduction for 2004.
|Filing Status||Standard Deduction|
|Married and spouse works||$4,850.00|
|Married and spouse does not work||$9,700.00|
|Head of Household||$7,150.00|
For the single, married and spouse works, and married and spouse does not work, the employee is allowed a $1,200.00 deduction for each allowance claimed on the MO W-4. For the head of household status, an employee is allowed $3,500.00 for the first allowance claimed on the MO W-4 and then $1,200.00 for each additional allowance thereafter. Please note, in past years, the head of household status was not allowed the $1,200.00 deduction for allowances two through four when using the withholding tax formula.
Agencies are reminded that the Missouri Department of Revenue does not use the federal W-4 for establishing filing status and exemptions for Missouri. Agencies should insure that they have a MO W-4 on file for employees claiming Missouri withholding. If the employee does not have a MO W-4 on file, the employee's Missouri withholding status should be Single with zero allowances. Please find attached copies of the MO W-4 and 2004 Missouri Withholding Tax Formula for your information
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued through their systems.
Attachments: Missouri W-4 and 2004 Missouri Withholding Tax Formula