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FAQ: Why did the amount of Missouri State Income tax calculated on employee checks change after installing the recent update?

The Missouri Department of Revenue released a new Withholding Tax Formula (https://dor.mo.gov/business/withhold/documents/WithholdingTaxFormula_001.pdf) and the changes were included in the recent update (version 18.11.12.01).  Instead of subtracting the actual amount of federal income tax, the state now wants an estimated amount calculated using the process described in item 3 of Step 1.  This new calculation may change the amount of state income tax being withheld from employee payroll checks.  Additional information regarding this change can be found on the Missouri Department of Revenue’s website:  https://dor.mo.gov/news/newsitem/uuid/fc0f7ab9-5969-4b16-9d40-a390fdde97a7 and https://dor.mo.gov/business/withhold/.