Jefferson City, MO – Effective January 1, 2021, Missouri 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 (from $11,500 to $11,000) as of January 1, 2021.
The taxable wage base is the maximum amount of wages per employee on which an employer must pay UI taxes in a calendar year. “Over the past several months, Missouri has experienced unprecedented economic pressures and a historic spike in unemployment claims,” Governor Mike Parson said. “Despite these challenges, Missouri’s Unemployment Trust Fund (UTF) remains sound and stable, and instead of facing a tax hike, Missouri employers will see their taxes fall.”
“The Missouri Department of Labor and Industrial Relations’ (DOLIR’s) Division of Employment Security (DES) continues to work diligently to protect the health of the UTF and promote continued economic growth across the state,” DOLIR Director Anna Hui stated. “Decreasing the taxable wage base enables employers to reinvest the savings into their businesses and, in turn, their communities and local economies.”
The TWB can be increased by $1,000 or decreased by $500 for any year, depending on the UTF’s average balance. Additionally, most Missouri employers will see an additional rate reduction of 12 percent for 2021. This tax rate adjustment, known as the contribution rate adjustment (CRA), is a percentage increase or decrease to the tax rate based on the average cash balance of the UTF.
Missouri employers can see how this change impacts them by logging into their account at uinteract.labor.mo.gov or by visiting labor.mo.gov/DES/Employers/tax_rates.
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