Unemployment Insurance To Be Reduced For MO Employers

The Missouri Department of Labor and Industrial Relations has announced that Missouri employers will see a reduction in their unemployment insurance taxes due to a decrease in Missouri’s Unemployment Insurance taxable wage base beginning January 1st.

The taxable wage base is the maximum amount of wages per employee on which an employer must pay UI taxes in a calendar year.

For Missouri employers, the Taxable Wage Base will decrease $500 (from $11,500 to $11,000) as of January 1, 2021.

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.