Mo. Code Regs. tit. 12 § 10-2.016
Current through Register Vol. 49, No. 9, May 1, 2024
Section 12 CSR 10-2.016 - [Rescinded effective 5/31/2024] Quarter-Monthly Period Reporting and Remitting Withholding TaxPURPOSE: Under the State Income Tax Law (section 143.011, RSMo), this rule establishes the requirement of reporting and remitting withholding taxes on a quarter-monthly period to protect state revenue and improve the cash flow of revenue for the state.
(1) If an employer is required under sections 143.191-143.265, RSMo to deduct and withhold the aggregate amount of nine thousand dollars ($9,000) or more in each of at least two (2) months during the prior twelve (12) months, the employer must file a return (MO-941P) and remit payment to the director of revenue on a quarter-monthly basis. Amounts remitted on a quarter-monthly basis shall be treated as payments on the employer's monthly return (MO-941). A monthly return (MO-941) reconciling the quarter-monthly payments is required by the fifteenth day of the following month, except for the return for the third month of the quarter which is due the last day of the following month. The employer shall mail a quarter-monthly payment voucher (MO -941P) and payment to the address provided on Form MO-941P within three (3) banking days following the end of the quarter-monthly period or deliver the form and payment to the director of revenue in Jefferson City, Missouri or his/her designated depository within four (4) banking days after the end of the quarter-monthly period. The compensation authorized in section 143.261, RSMo may be taken by the employer against the payment required to be made only if the payment is made by the employer on a timely basis as provided in section 143.851, RSMo. Banking days shall not include Saturday, Sunday or legal holidays.(2) A quarter-monthly filer has the option to- (A) Pay one hundred percent (100%) of the estimated quarter-monthly amount, as determined by the department, within three (3) banking days after end of each quarter-monthly period (four (4) times a month); or(B) Pay at least ninety percent (90%) of the actual tax due by the due date of that particular quarter-monthly period. If there is no payroll during a quarter-monthly period, no quarter-monthly payment voucher is necessary. 1. Example: An employer has a semimonthly payroll cycle which falls on January 15 and on January 31. The actual Missouri income tax withholding for the January 15 payroll is $12,000. The employer must remit at least 90% of the $12,000 ($10,800) with the second quarter-monthly payment voucher that is due no later than January 18. The actual Missouri income tax withholding for the January 31 payroll is $15,000. The employer must remit at least 90% of the $15,000 ($13,500) with the fourth quarter-monthly payment voucher that is due no later than February 3. Since the employer did not have a payroll during the first or third quarter-monthly periods, a quarter-monthly payment voucher does not need to be submitted for those two periods.2. Example: An employer has only one monthly payroll period and it falls on January 20 payroll. The actual Missouri income tax withholding for the January 20 payroll is $30,000. The employer must remit at least 90% of the $30,000 ($27,000) with the third quarter-monthly payment voucher that is due no later than January 25. Since the employer did not have a payroll during the first, second or fourth quarter-monthly periods, a quarter-monthly payment voucher does not need to be submitted for those three periods. Any required additional tax due must be paid on or before the due date of the return.(3) Quarter-monthly period means- (A) The first seven (7) days of a calendar month;(B) The eighth to fifteenth day of a calendar month;(C) The sixteenth to twenty-second day of a calendar month; and(D) The twenty-third day through the last day of a calendar month.(4) A quarter-monthly penalty of five percent (5%) in lieu of all other penalties, interest or additions to tax imposed by the statutes will be charged on the amount of the underpayment for each quarter-monthly period. The quarter-monthly penalty of five percent (5%) of underpayment for each quarter-monthly period will not be imposed if one (1) of the following exceptions is met: (A) One hundred percent (100%) of the estimated quarter-monthly amount, as determined by the department, is paid within three (3) banking days after the end of each quarter-monthly period (four (4) times a month); or(B) At least ninety percent (90%) of the actual tax due is paid by the due date of that particular quarter-monthly period. If there is not a payroll during a quarter-monthly period, no quarter-monthly payment voucher is necessary.(5) If any employer reports withholding on a complex unit reporting basis, then the nine thousand dollar ($9,000) aggregate amount as defined in section (1) is the total of all amounts required to be deducted and withheld by section 143.191, RSMo for all individual units of an employer.(6) Overpayments. If withholding tax has been over reported in any one (1) period, an Employer's Withholding Tax Overpayment Amended Report (Form 941X) must be filed with the Department of Revenue, along with supporting documentation; such as a copy of your payroll ledger, records or W-2's. An overpayment notice will be issued by the director for any excess remittance over the actual amount due for a period. An employer cannot take credit for an overpayment until s/he has received notification from the director of revenue.(7) Underpayments. If withholding tax has been underported in any one (1) period, the employer must file an Employers' Withholding Tax Underpayment Amended Return, Form MO-941U to report the additional withholding. However, no penalty for underpayment of any amount required to be paid will be imposed on any employer for failure to comply with the quarter-monthly filing requirements for the first two (2) months the employer is obligated to make quarter-monthly payments.(8) Any employer who has been placed on a quarter-monthly filing frequency who consistently is not required to deduct and withhold nine thousand dollars ($9,000) or more for a monthly period may request permission from the director to file and pay on a less frequent basis. An employer must file and pay on a quarter-monthly basis for a minimum of twelve (12) months before requesting a change in filing frequency. AUTHORITY: section 143.961, RSMo 1994.* Emergency rule filed Oct. 13, 1982, effective Nov. 1, 1982, expired Feb. 28, 1983. Original rule filed Oct. 13, 1982, effective Jan. 13, 1983. Emergency amendment filed Nov. 12, 1982, effective Nov. 22, 1982, expired Feb. 28, 1983. Amended: Filed March 9, 1984, effective June 11, 1984. Amended: Filed June 2, 1993, effective Jan. 31, 1994. Amended: Filed April 14, 1995, effective Sept. 30, 1995. Amended: Filed Feb. 6, 1998, effective Aug. 30, 1998. Rescinded by Missouri Register April 15, 2024/volume 49, Number 08, effective 5/31/2024.*Original authority: 143.961, RSMo 1972.