Missouri State Tax

Note: For records on 5-2-2 Payroll Records that have the Payroll Type of 2—Bonus, Sage 100 Contractor calculates state income tax using the published flat-rate.

The State of Missouri uses the MO W-4 form for determining the Employee Withholding Allowances.

Important! Missouri uses the annual Federal Income Tax deduction amount as part of the State Income Tax deduction.

  • Individuals filing a separate Missouri Income Tax return are entitled to deduct a maximum of $5,000.
  • Individuals filing a combined Missouri Income Tax return (Self and Spouse) are entitled to deduct a maximum of $10,000.

Sage 100 Contractor determines the federal deduction maximum for an employee based on the employee’s marital status. When you enter a marital status for an employee, Sage 100 Contractor computes the deduction maximum as follows:

Marital statuses

Marital Status

MO W-4 Filing Status

1-Single

Single

2-Married

Married Filing Combined

3-Head of Household

Head of Household

4-Married/Separate

Single

5-Married/Jointly

Married Filing Combined

To set up payroll calculations on an employee for Missouri State Tax:

  1. Open 5-2-1 Employees.
  2. Using the data control, select the employee.
  3. Click the Calculations tab.
  4. In the Marital column, in the cell of the Missouri Income Tax row, enter the corresponding marital status number.

  5. In the Std Allow column, in the cell of the Missouri Income Tax row, enter the number of exemptions/allowances claimed.

    Important! When entering amounts, it is required that you round to the nearest dollar.

  6. On the menu bar, click File, then click Save.