The Missouri Department of Revenue has issued new "Employee's Withholding Allowance Certificates" Form MO W-4 (Revised 12-2015). All Missouri employees must submit a new Form MO W-4 for the rest of tax year 2016. The Missouri Department of Revenue is requiring that employers begin withholding from 2016 payrolls as if an employee is single with zero allowances, for any employee who does not complete/provide a new Form MO W-4 for tax year 2016.
ADP has made system changes to comply with this change. For employees who do not have a Missouri marital status and number of allowances in the ADP system on payrolls dated on or after October 1, 2016, Missouri state income tax will be calculated using single with zero allowances. Prior to October 1, 2016, the default was to calculate using federal marital status and allowances.
This notice is to give you the opportunity to notify your Missouri employees as they should complete a new MO W-4 Form as the default taxation has changed. The new values on the form should be updated in the ADP system as soon possible or there is the opportunity for withholding at a new rate which could be higher than what is currently deducted.