The start of a new year can bring with it many changes. If you are located in or operating in Missouri, you may be impacted by a couple of these.
Effective January 1, 2019, the minimum wage in Missouri increased to $8.60 per hour. The minimum wage will continue to increase annually through 2023 up to $12 per hour.
Another change hitting Missouri taxpayers is the change in the deduction for federal income tax claimed on the Missouri income tax return. This is effective for tax years beginning on or after January 1, 2019. An individual will be allowed a deduction equal to a percentage of his or her federal income tax liability based on his or her adjusted gross income. This change may bring with it a small increase in the Missouri withholding calculation because Missouri chose to remove the federal tax deduction from the withholding calculation. Employees should review their Missouri W-4 to make changes based on their filing status as Missouri removed allowances from the withholding tables. If additional withholding is needed, employees should enter the amount on Line 2 of the W-4.
Please contact your MarksNelson advisor at 816-743-7700 if you have questions.