Guide to Finance

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Starting A Law Practice
Charles J. Read
State Tax Commission
Income and Franchise Tax Division
P.O. Box 960
Jackson, MS 39205
(601)-923-7083
www.mstc.state.ms.us/taxareas/withhold/main.htm
Mississippi requires that you use Mississippi form "89-350, Mississippi Employee's Withholding Exemption Certificate" instead of a Federal W-4 Form for Mississippi State Income Tax Withholding.
Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Mississippi cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.
In Mississippi supplemental wages are required to be aggregated for the state income tax withholding calculation.
You must file your Mississippi state W-2s by magnetic media if you are have at least 50 employees and are required to file your federal W-2s by magnetic media.
The Mississippi State Unemployment Insurance Agency is:
Employment Security Commission
P.O. Box 1699
Jackson, MS 39215-1699
(601) 961-7755
www.mesc.state.ms.us/tax/index.html
The State of Mississippi taxable wage base for unemployment purposes is wages up to $7000.00.
Mississippi has optional reporting of quarterly wages on magnetic media.
Unemployment records must be retained in Mississippi for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The Mississippi State Agency charged with enforcing the state wage and hour laws is:
Department of Health
Occupational Safety and Health Branch
2423 North State St.
Jackson, MS 39215
(601) 960-7400
There is no provision for minimum wage in the State of Mississippi.
There is also no general provision in Mississippi State Law covering paying overtime in a non-FLSA covered employer.
Mississippi State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:
  • Employee's name
  • date of hire
  • Employee's date of birth.
  • Employee's address
  • Employee's social security number
  • Employer's name
  • Employers address
  • Employer's Federal Employer Identification Number (EIN)
  • This information must be reported within 15 days of the hiring or rehiring.
    The information can be sent as a W4 or equivalent by mail, fax or electronically.
    There is a $25.00 penalty for a late report and $500 for conspiracy in Mississippi.
    The Mississippi new hire-reporting agency can be reached at 800-241-1330 or on the web at https://newhirereporting.com/ms-newhire/default.asp
    Mississippi does allow compulsory direct deposit but the employee's choice of financial institution must meet federal Regulation E regarding choice of financial institutions.
    Mississippi has no State Wage and Hour Law provisions concerning pay stub information.
    Mississippi requires that employee be paid no less often than semimonthly, biweekly, or on 2nd and 4th Saturdays of month for manufacturers and public service corporations.
    Mississippi requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed ten days after pay period; 15 days for public service corporations.
    Mississippi has no general provision on when terminated employees must be paid their final wages.
    Deceased employee's wages must be paid when normally due to the surviving spouse or next of kin.
    Escheat laws in Mississippi require that unclaimed wages be paid over to the state after five years.
    There is no provision in Mississippi law concerning record retention of abandoned wage records.
    There is no provision in Mississippi law concerning tip credits against State minimum wage.
    In the Mississippi payroll law there is no provision covering required rest or meal periods.
    There is no provision in Mississippi law concerning record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines.
    The Mississippi agency charged with enforcing Child Support Orders and laws is:
    Division of Child Support Enforcement
    Department of Human Services
    750 N. State Street
    Jackson, MS 39205
    (601) 359-4863
    (800) 948-4010
    www.mdhs.state.ms.us/cse.html
    Mississippi has the following provisions for child support deductions:
    • When to start Withholding? First pay period after 14 days from service.
  • When to send Payment? Within 7 days of Payday.
  • When to send Termination Notice? "Promptly"
  • Maximum Administrative Fee? $2 per payment.
  • Withholding Limits? Federal Rules under CCPA.
  • Please note that this article is not updated for changes that can and will happen from time to time.
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