MO HB2049

Employers with separate unemployment contribution accounts that maintained positive balances in the preceding calendar year may retain state income withholding tax equal to their federal unemployment tax credit rate reduction.

Division of Employment Security must provide the Department of Revenue documentation identifying eligible employers to retain withholding tax.

Employers must submit documentation with their first withholding return claiming retained tax to verify the amount of their federal unemployment tax credit rate reduction.

Department must notify employers by January 31st annually regarding federal credit reduction status, the amount of any credit reduction, and eligibility to retain withholding tax if they maintained a positive account balance.

Employees receive full tax withholding credit for amounts their employers retain under this provision, effective January 1, 2015.