Daniel Eisner is a payroll specialist with over a decade of practical experience in senior accounting positions.
Updated on September 28, 2023
Mississippi Paycheck Calculator
What Are Payroll Taxes?
Mississippi Payroll Taxes
Paying Payroll Taxes
Using a Payroll Tax Service
Use Mississippi Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.
State
Where are you employed?
Salary
How much do you get paid annual?
Salary frequency
How often are you paid?
Marital status
What is your federal filing status?
Dependent(s)
Children under 17 and students under 24
All other dependents
Employee Location
Where do you live?
Benefits and Deductions
Help
The addition of employee benefits such as 401(k)s and health insurance can affect
how your paycheck is calculated. Please add any deductions for benefits offered by
your company.
Choose a calculation method:
Fringe Benefits
Help
Fringe benefits are additional non-cash benefits offered by employers and are
often taxable, which can affect an employee’s paycheck and final take-home pay.
Please skip this section if you don’t use any of these benefits.
Choose a calculation method:
Gross Pay
$0
Income taxes
0%
$0
Federal Income Tax
0%
$0
Alabama State Tax
0%
$0
Local Tax
0%
$0
FICA taxes
0%
$0
Social Security
0%
$0
Medicare
0%
$0
Additional Medicare
0%
$0
Pre tax
0%
$0
Post tax
0%
$0
What Are Payroll Taxes?
Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.
The Social Security tax is paid by both the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.
Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.
Each state also has specific state payroll taxes that must be withheld and paid.
Mississippi Payroll Taxes
There are two Mississippi employer payroll taxes to keep track of in addition to Social Security and Medicare.
Employers contribute to a state unemployment tax account, and employees pay state income tax.
SUTA
Under SUTA, companies must allocate a portion of their payroll taxes toward the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.
In Mississippi, SUTA is paid on the first $14,000 of annual employee income, as of 2022. Rates, according to the Mississippi Department of Economic Security website, are as follows:
In Mississippi, the tax rate for a start-up business is 1.00% the first year of liability, 1.10% the second year of liability and 1.20% the third and subsequent years of liability until the employer is eligible for a modified rate. These rates do not include the Workforce Investment and Training contribution rate that might be applicable for the rate year. If the organization acquired a business that is already liable for unemployment taxes in Mississippi, the organization may be immediately eligible for a modified tax rate. This rate may be higher or it may be lower than the new employer rate.
A modified rate is a rate based upon the ratio of benefits charged to an employers’ account to taxable wages paid by the employer, (benefits charged divided by taxable wages paid), plus the general experience ratio of the whole state unemployment program. The general experience ratio consists of items such as charges to employers who have closed their business, charges to employers who are bankrupt, excess charges to employers whose tax rate exceeds the maximum tax rate and a solvency factor to ensure the unemployment trust fund remains able to sustain the payment of unemployment benefits.
Mississippi state income tax rates are based on income levels and filing status and range from 0% to 5%, as detailed on the Mississippi Department of Revenue website.
In Mississippi, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.
You’ll just send over your digital timesheets and relevant information, and the service provider will take care of the calculations, payments, and taxes, freeing you up to focus on growing your business.
We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!
