The purpose of this article to to inform clients of the Missouri Timely Compensation Credit and how it appears on the payroll Summary Report.

Missouri Timely Compensation Credit

MO allows ER's who are not government agencies or political subdivisions to take a deduction off their MO withholding tax payments if their tax return is timely filed and timely paid. The timely compensation deduction is computed as follows and appears in the Payroll Funding portion of the Payroll Summary Report as it does not affect the wages or tax amount reported to the agency, it is a credit allowed on the return.

Amount of Compensation	YTD Tax Withheld
2%	0 to $5,000
1%	$5001 - $10,000
0.5%	in excess of$10,000

For more information regarding the credit visit MO.gov.

If you would like to opt out of the credit please contact taxes@employdrive.com.