Missouri State Tax Routine (MOTX)

The Missouri (MOTX) State Tax Special Routine processing utilizes the following steps:

Line 1

Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).

Line 2

Determine the Standard Deduction Allowance (Maximum SDA in TAXP)

Line 3

Determine the Taxable Amount by subtracting Line 2 from Line 1.

Line 4

Determine the Minimum Amount withheld from the DEDX.

Line 5

Determine the Net Taxable Income excess over by subtracting the Minimum amount withheld (Line 4) from the Taxable amount (Line 3).

Line 6

Determine the Amount of Tax Withholding**, using the Marginal Tax Rates (DEDX) entries for the State Tax deduction, 

  1. Tax Rate Percent  

  2.  Annual Base Tax Amount

Line 7

Divide the amount on Line 6 by the number of payroll periods in a year to determine the employee’s Missouri Withholding Tax for the pay period.

* Determine the Amount of Tax Withholding

  1. Tax Rate Percent of the Net Taxable Income plus Base Tax Amount.