MO · Payroll tax 2026
The true cost of hiring in Missouri
Estimate what a W-2 employee costs in Missouri and compare it with a 1099 contract using sourced 2026 payroll-tax defaults that you can adjust to your assigned rate.
Estimate a Missouri hire
Pre-filled with a 2.38% base new-employer rate. Adjust SUI, salary, benefits, and the 1099 rate to fit your hire.
Results update instantly. Your values stay in this browser.
A W-2 hire in Missouri costs more than salary. Employers pay federal FICA and FUTA plus state unemployment insurance. For 2026, HiringMath uses a 2.38% base new-employer rate on the first $9,000 of wages, producing up to about $214 of state UI tax per worker before experience-rating or account-specific adjustments. Missouri taxes wage income, which creates a withholding obligation but is not an employer-paid tax. The calculator below combines those statutory items with editable benefits, workers' compensation, and overhead, then compares the result with a 1099 contract.
Missouri employer tax facts
| Item | MO |
|---|---|
| Base new-employer SUI rate | 2.38% |
| SUI taxable wage base | $9,000 |
| Federal FICA (employer) | 7.65% |
| FUTA | 0.6% |
| State income tax on wages | Yes |
| Worker classification test | Common-law control test |
Example: a $75,000 hire in Missouri
At a $75,000 base salary with typical benefits, a W-2 employee in Missouri costs an employer $99,293 per year — $24,293 above base pay. An equivalent 1099 contract at $75,000 would cost $24,293 less; the breakeven contract rate is $99,293.
Misclassification risk in Missouri
Test: Common-law control test
Common-law test; back UI taxes and civil liability.
Penalties by stateCompare nearby rates
Missouri's 2.38% new-employer SUI rate sits near Hawaii (2.4%), Oregon (2.4%), Wyoming (2.35%), Massachusetts (2.42%). See the full 51-state comparison or the 2026 employer payroll tax reference.
Common questions
Missouri hiring-cost FAQ
What SUI rate does HiringMath use for Missouri?
The calculator starts with a 2.38% base new-employer rate, applied to the first $9,000 of each employee's 2026 wages. Your assigned rate can differ because of industry, surcharges, and claims history, so replace the default with the rate on your state notice when available.
Does Missouri have a state income tax?
Yes. Missouri taxes wage income. Employers withhold it from employee pay, but it does not directly increase the employer's payroll-tax cost.
What should employers know about worker classification in Missouri?
Common-law test; back UI taxes and civil liability. This is a planning summary, not legal advice; confirm classification decisions with the relevant agency or counsel.