The Missouri Department of Revenue published a revised Form 4282 (Employer’s Tax Guide) on October 3, 2018. The new Missouri withholding tax calculation formula no longer uses the number of allowances from Missouri Form MO W-4. Instead, the Missouri withholding tax calculation formula now uses the number of allowances claimed by the employee on IRS Form W-4, and requires calculating the estimated U.S. Federal tax on the employee’s annualized wages, reduced by the Missouri standard deduction for the Filing Status claimed on Missouri Form MO W-4.
We have delivered modifications to PSPUSTAX to support the new tax calculation formula. Links to patches can be found on our PeopleSoft Payroll Hot Topics Document.
For a detailed description of the new Missouri withholding tax calculation formula, see Form 4282 (Revision 10/03/2018) on the website of the Missouri Department of Revenue.