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Lower Unemployment Leads to Millions of Dollars in Reduced Taxes for Missouri Businesses

Lower Unemployment Leads to Millions of Dollars in Reduced Taxes for Missouri Businesses

Thu, 12/20/2018

JEFFERSON CITY, MO -- For the second year in a row, thousands of Missouri’s employers will see a reduction in their unemployment insurance (UI) taxes due to a decrease in Missouri’s UI taxable wage base (TWB). For Missouri employers the TWB will decrease $500 as of January 1, 2019, from $12,500 to $12,000.

The TWB is the amount of wages per employee on which an employer must pay UI taxes in a calendar year. Additionally, because of the improving cash balance in the state’s Unemployment Trust Fund (UTF), a majority of Missouri employers will see an additional tax rate reduction of 12 percent.

The combined decreases are estimated to reduce employer taxes by as much as $30 million in 2019.

“Division of Employment Security staff continues to work diligently to ensure that Missouri’s Trust Fund remains healthy, while also ensuring that employer taxes aid both the unemployed and continued economic growth across the state,” says DES Director Chris Slinkard. “Decreasing the taxable wage base and reducing the tax rate enables employers to reinvest the savings into their businesses and, in turn, their communities and local economies.”

Missouri employers can now access their accounts and see how this change impacts them for 2019 by logging into their account at uinteract.labor.mo.gov.

Promoting economic vitality across Missouri is one of the primary goals of the Department of Labor & Industrial Relations. To learn more about the strategic changes being made to benefit Missouri’s businesses and workers, visit strategicchange.mo.gov.

 

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Contact Information

Adam Pulley
Phone: 
573-522-2296