What payroll tax accounts should new businesses register for?

Payroll Tax Accounts for New Businesses in Missouri

When starting a business in Missouri, registering for the correct payroll tax accounts is essential to ensure compliance and smooth operations. Below are the key payroll tax accounts new businesses should set up.

Federal Payroll Tax Accounts

• Employer Identification Number (EIN): Obtain an EIN from the IRS. This is required for reporting federal payroll taxes, including Social Security, Medicare, and federal income tax withholding.
• Federal Unemployment Tax Act (FUTA): Register for FUTA tax reporting through your EIN. FUTA funds federal unemployment benefits and is reported annually.

Missouri State Payroll Tax Accounts

• Missouri Withholding Tax Account: Register with the Missouri Department of Revenue to withhold and remit state income taxes from employee wages. This is mandatory for all employers with employees working in Missouri.
• Missouri Unemployment Insurance (UI) Account: Register with the Missouri Division of Employment Security to pay state unemployment insurance taxes. This account funds unemployment benefits for eligible workers.

Additional Operational Considerations

• Electronic Filing and Payment: Missouri encourages electronic filing and payment for withholding and unemployment taxes. Setting up online accounts with the Missouri Department of Revenue and Division of Employment Security streamlines compliance and recordkeeping.
• Employee Classification: Correctly classify workers as employees or independent contractors to ensure proper payroll tax withholding and reporting.
• Recordkeeping: Maintain accurate payroll records to support tax filings and audits. Missouri requires retention of payroll tax records for at least three years.
• Reporting Frequency: Depending on your payroll size, you may be required to file withholding and unemployment reports quarterly or monthly. Confirm your filing frequency upon registration.

As of 2026, ensure you consult the Missouri Department of Revenue and Division of Employment Security websites for the latest registration procedures and thresholds for payroll tax accounts. Proper registration and timely payments help avoid penalties and support efficient business operations.