Mississippi New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Obtain an Employer Identification Number, (also known as an EIN or FEIN), for your business if you do not already have one. The simplest (and preferred way) is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
- Although it is not required, we recommend that you register for this federal tax paying system. You can easily register online. You will need to have this account to make tax payments online, or view payments made on your behalf by Patriot.
- To find out more about the EFTPS, please read our article, “What Is EFTPS?”
State of Mississippi Tax Accounts:
- You can register your business online using the Mississippi Taxpayer Access Point. This account will be needed for your state income taxes (SIT).
- Mississippi new employers can register using the Online Services for Employers. This account will be necessary for filing your state unemployment insurance (SUI) taxes.
- The Mississippi new employer SUTA tax rate for the first year of liability is 1.0%, 1.10% for second year companies, and 1.20% for third year and subsequnt companies till employers are elgible for a modified rate. New SUTA tax rates are determined in February.
- Employers in Mississippi will receive a State Unemployment Tax Assessment (SUTA) rate every year.
- To learn more about SUTA, please read our article, “What Is SUTA Tax?”
Setting Up Your New Employee:
- The U.S. requires all employers fill out Form I-9 for employee work verfication. For more information, please read, “Form I-9 In a Nutshell.”
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “What Should Be in an Employee File?”
- Employees need to fill out Form W-4, Employee’s Withholding Certificate, for federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
Employees should complete Form 89-350, Mississippi Employee’s Withholding Exemption Certificate for state income taxes (SIT).
- Mississippi employers need to report new hires within 15 days of hire or rehire. You can report online to the Mississippi State Directory of New Hires.
- Mississippi employers must follow the federal minimum wage of $7.25 per hour.
- By law, you are required to post the minimum wage poster where employees can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!