Missouri Department of Labor Sets 2024 Unemployment Insurance Contribution Rate and Workers’ Compensation Rates, Per State Law

JEFFERSON CITY – As required by state law, the Missouri Department of Labor and Industrial Relations has set certain business tax rates for the upcoming 2024 calendar year.

Division of Employment Security

The Missouri Division of Employment Security has calculated the 2024 Contribution Rate Adjustment (CRA) for CY2024, which will be set at a 12% reduction for the year. A contribution rate adjustment is a percentage increase or decrease to the tax rate that is based on the average cash balance of the Unemployment Trust Fund. Rates may be increased by 10%, 20% or 30%, or reduced by 7% or 12%. Per statute, any employer whose calculated rate is 6% or greater will receive a 10% CRA reduction.

The taxable wage base for CY2024 will be $10,000, a reduction of $500 from CY2023.

The UI program is a joint state-federal program funded solely through tax contributions paid by employers, so no deductions are made from employees’ paychecks for this insurance. Payments of benefits under the regular UI program are made from the UTF to eligible claimants and are funded by contributions made by employers. Information about the funding streams for the state’s Unemployment Insurance program is available here: https://labor.mo.gov/des/employers/tax-rates.

Division of Workers’ Compensation

The Missouri Division of Workers’ Compensation has notified stakeholders of the CY2024 Workers’ Compensation Administrative Tax and Surcharge, Second Injury Fund (SIF) Surcharge and SIF Supplemental Surcharge. These rates remain unchanged from CY2023.

The State of Missouri assesses a workers’ compensation administrative tax and surcharge (on the deductible portion of the policy) to maintain the fiscal integrity of the Workers’ Compensation Administrative Fund. The revenue funds expenses of administering the state’s workers’ compensation programs.

State law authorizes the imposition of a SIF surcharge as well as a SIF supplemental surcharge. The rates for each tax and surcharge for 2023 and 2024, as well as the maximum rates allowable by law, are listed below:

###