Mississippi Paystub laws and regulations
If your business operates in Mississippi, it's crucial to understand the laws and regulations governing payroll and providing pay stubs to employees and contractors.
This guide outlines the essential information you need to know to ensure compliance with Mississippi's employment regulations.
Pay stub regulations in Mississippi
1. Are pay stubs required by law in Mississippi?
It's not mandatory for employers in Mississippi to provide employees with pay stubs. However, federal law requires all employers covered by the Fair Labor Standards Act (FLSA) to maintain a record of employee payments for at least 3 years.
2. How often do you need a pay stub in Mississippi?
You will need to pay your employees once every two weeks or twice during each calendar month. Although there's no law for employers to provide pay stubs to their employees and contractors, it is recommended that you issue pay stubs every time you pay an employee.
3. What information can be included on a pay stub in Mississippi?
Since there's no law for pay stubs, you can include the information listed below:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- Pay period
- Gross earnings before deductions
- Taxes withheld
- Employee contributions
4. Does Mississippi have a state income tax?
Yes, state income taxes are applicable to employees in the state of Mississippi.
5. Are there any other taxes applicable to Mississippi?
No. There are no local taxes in the state of Mississippi.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee's exemption status from state withholding
- Filing status, total allowances, and additional state withholding amount.
Mississippi wage and hour laws
Employers in Mississippi are required to follow wage and hour regulations, ensuring that non-exempt employees are paid at least the minimum wage, compensated correctly for overtime hours worked, provided with adequate meal and rest breaks, and granted appropriate paid time-off benefits.
A broad spectrum of employment law matters in Mississippi is addressed by these regulations.
Mississippi Minimum wage
Mississippi does not have its own minimum wage law. However, employers who fall under the Fair Labor Standards Act must adhere to the current federal Minimum wage of $7.25 per hour.
Overtime pay
Mississippi defers to the federal Fair Labor Standards Act (FLSA) for regulations regarding overtime, lacking its own specific laws on the matter. According to the FLSA, both full-time and part-time employees are eligible for overtime compensation if they exceed 40 hours of work in a single workweek. The standard rate for overtime pay is one and a half times the employee's regular rate of pay.
Mississippi meal break and rest break
Mississippi law does not require employers to provide meal breaks or rest breaks for their employees.
Paid time off and leave
In Mississippi, employers must offer employees a range of leave benefits, including both mandatory and discretionary options.
| Required Leave | Non-Required leave |
|---|---|
| Unpaid | Paid or Unpaid |
| Employers may need to grant employees unpaid leave in compliance with the federal Family and Medical Leave Act (FMLA). | Vacation leave |
| Jury duty leave | Bereavement leave |
| Military leave | Voting leave |
| Sick leave |
Mississippi State payroll taxes 2024
In Mississippi, payroll taxes are categorized as follows:
- Mississippi Personal Income Tax(PIT)
- Mississippi State Unemployment Insurance (UI)
Mississippi Personal Income Tax(PIT)
In Mississippi, state personal income tax rates differ based on an individual's filing status and their income level. Filing statuses encompass Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
Individual income Tax rates for the tax years 2024 to 2026 in Mississippi have been revised as follows:
- For Tax Year 2024, any taxable income exceeding $10,000 is taxed at a rate of 4.7%.
- For Tax Year 2025, any taxable income exceeding $10,000 is taxed at a rate of 4.4%.
- For Tax Year 2026, any taxable income exceeding $10,000 is taxed at a rate of 4%.
Married couples filing joint or combined returns in Mississippi have the flexibility to divide the standard deduction amount of $4,600 or the itemized deduction amount between themselves in any manner they prefer. However, for those filing separately, any portion of the $2,300 standard deduction used by one spouse on their separate return cannot be utilized by the other spouse on their separate return.
Mississippi State Unemployment Insurance (UI)
In Mississippi for the year 2024, State Unemployment Tax Act (SUTA) rates range from 0.2% to 5.6%, maintaining a consistent taxable wage base of $14,000. New employers, categorized as start-up businesses, are subject to a tax rate of 1.0% in the first year of liability, 1.1% in the second year, and 1.2% from the third year onward until they become eligible for a modified rate. Please note that these rates do not include the Workforce Investment and Training Contribution rate, which may be applicable for the rate year.
Mississippi payroll tax filing
- Report of New hire Employees
- Report of Independent Contractors
- Mississippi personal income tax filing(Form 80-205,Form 80-105)
- Mississippi quarterly wage and tax report(Form UI-2/3 )
Report of New hire Employees
In Mississippi, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) mandates that all employers report newly hired and re-hired employees to a state directory within 15 days of their start date. This requirement applies to all types of employers, including public, private, non-profit, and government entities operating within the state.
Report of Independent Contractors
While the State Directory of New Hires in Mississippi accepts reports for Independent Contractors, it's important to note that employers are not legally obligated to submit them.
How to report employees new hire in Mississippi?
In Mississippi, there are several options available for submitting new hire information, offering flexibility in the reporting process.
| Online | Fax | |
|---|---|---|
| Employees New Hire Report | Address Information: Mississippi State Directory of New Hires P.O. Box 437 Norwell, MA 02061 Public Phone: 800-241-1330 | Fax 1: 800-937-8668 |
Mississippi personal income tax filing(Form 80-205,Form 80-105)
The deadline for filing your 2023 Mississippi Individual Income Tax Returns is April 15, 2024. However, if you need more time, you can request an extension, which will extend the deadline to October 15, 2024, for submitting your return. It's important to note that this extension is specifically for filing the return itself; any taxes owed must still be paid by April 15, 2024, to avoid penalties and interest.
For Mississippi residents, the commonly used form for filing their Individual Income Tax Return is Form 80-105. For non-residents or part-year residents, Form 80-205 is typically used. These forms can be obtained from the Mississippi Department of Revenue website or your local public library. Additionally, starting January 29, 2024, Mississippi will accept electronically filed returns, which can streamline the filing process for both residents and non-residents alike.
Mississippi quarterly wage and tax report(Form UI-2/3 )
In Mississippi, employers report their unemployment insurance on a quarterly basis.Quarterly wage reports and taxes are due by the last day of the month following the close of each calendar quarter. If any of these due dates fall on a weekend, the deadline shifts to the next business day.
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Interest accrues at 1% per month on any overdue amount until all taxes, penalties, and interest are paid. Penalties are also imposed. Late filing incurs a penalty of 10% of the tax due starting 30 days after the due date. An additional penalty of 10% of the tax due is imposed 60 days after the due date or upon issuance of a collection warrant. Combined penalties typically do not exceed 20% for any calendar quarter.
Have all the information handy?
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Processing payroll manually is complex
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This article has been updated from its original publication date of April 8, 2024.