Senate signs off on withholding tax bill
The Missouri Senate Thursday gave its approval to legislation that raises the amount of withholding tax a business must have to be able to file an annual withholding tax return and requiring businesses with more than 250 employees to file withholding tax information electronically.
Currently, the law reads that an employer is allowed to file an annual withholding tax return instead of four quarterly returns when the aggregate amount withheld is less than $20 in each of the four preceding quarters. The bill changes the amount to less than $100 in each of the four preceding quarters if the employer is not otherwise required to file a withholding return on a quarterly or monthly basis.
Withholding tax information filed by Missouri employers today is not used to prevent fraud and is simply filed away. Filing this information electronically will allow the DOR to more aggressively detect fraud.
Because HB1582 contains some language changes made in the Senate, the bill now heads back to the House for final action.