Withholding Tax FAQs

The following is intended to provide general information concerning frequently asked questions about taxes administered by the Mississippi Department of Revenue (DOR). It is an informal interpretation of the tax law and is not intended to serve as a rule, regulation, declaratory opinion, or letter ruling. Legislation, regulations, court decisions, notices and announcements could affect the accuracy of this information. Please refer to the Mississippi Code Annotated and the Mississippi Administrative Code for the most current version of the law and administrative procedures.

collapse Employee / Employer Questions

How do I know how much Income Tax to withhold from my employee’s salary?

What if an employee wants to change their withholding amount?

My employer is not Withholding Tax or will not provide me with a W2 form. What should I do?

I have an employee that refuses to complete the State withholding certificate. What do I need to do?

As an employer, am I responsible for determining if the withholding certificate completed by my employee is correct?

I am a Mississippi resident, but I work in another State. Is my employer required to withhold Mississippi Income Tax from my salary?

I am not a resident of Mississippi, but I work in Mississippi. Is my employer required to withhold Mississippi Income Tax from my salary?

I’m trying to file a prior year’s Income Tax return, but I don’t have my W2. Can you send me a copy?

I withheld Mississippi taxes for one of my employees that I should have withheld for another State. What should I do?

What information should I provide my employees for their records?

How do I know if a worker is an employee or an independent contractor for Withholding Tax purposes?

How do I know if a worker is an employee or an independent contractor for Withholding Tax purposes?

Do I have to withhold Mississippi Income Tax from compensation paid to Native Americans?

Is Mississippi Income Tax withholding required on pensions and annuities?

I have hired a sitter or someone to help in my home, am I required to withhold Income Tax from their wages?

Does Mississippi require withholding on Section 125 or Cafeteria plans?

Are wages paid to corporate officers subject to withholding?

We have employees receiving severance pay. Is this Income Taxable to the recipient?

Each year I give my employees a Christmas Bonus. How do I withhold?

Am I required to withhold on tip income?

Are wages paid to immediate family members subject to withholding? How about children under the age of 18?

collapse Filing Returns

How do I file Withholding Tax returns?

How do I amend Form W2?

Does Mississippi require a copy of Form W2C?

When are Withholding Tax returns due?

What is the due date for filing W2 information electronically?

What is the due date for filing 1099 information?

What is the due date of 1099 MISC?

Does Mississippi grant extensions for filing W2s?

What are the penalties for filing late?

Where do I get the Mississippi W2 forms and the 1099 information return forms?

I didn’t have any employees during the last reporting period. Do I still need to file a return?

I made an error when I filed my return or report. How do I correct it?

Does Mississippi use a depository system for withholding like the Internal Revenue Service?

I’m trying to file a prior year’s Income Tax return, but I don’t have my W2. Can you send me a copy?

What type of media does Mississippi accept for W2 data files?

Is electronic reporting of W2 data voluntary or mandatory?

How can I submit my withholding information if I have QuickBooks or Peachtree?

What are Mississippi's requirements for reporting miscellaneous income?

How do you report miscellaneous income?

What records should I keep for Mississippi tax purposes, and how long should I keep them?

collapse Registration and Updating Account Information

I’m opening a business and will have employees. What do I need to do?

How long does it take to complete registration?

What kind of information do I receive from the DOR after I register?

Can I use my Federal Employer’s Identification number (FEIN) as my Mississippi Withholding Tax account number?

How do I get a FEIN?

How do I file Withholding Tax returns?

My Federal identification number changed. Do I need a new Withholding Tax account?

I purchased an existing business. Can I use the previous owner’s withholding account number?

I am a sole proprietor and have opened another business. Do I need another Withholding Tax account number?

I am presently a proprietorship (or partnership.) Do I need to obtain a new withholding account if I should incorporate?

If I change the trade name of my business, do I need to get a new withholding account?

Are non-profit organizations required to withhold tax from their employees?

How do I close my Mississippi Withholding Tax account?

How do I change my address or other information?

collapse Withholding - Other

Who do I contact about Unemployment Taxes?

Who do I contact for information about Worker’s Compensation?

Where do I pay social security taxes?

I’m opening a business and will have employees. What do I need to do?

Every employer engaged in business, licensed to do business, or transacts business in Mississippi or who pays wages to a Mississippi resident (regardless of where the services are performed), or pays wages to a non-resident (persons domiciled outside of Mississippi ) for services performed in Mississippi must register for a Withholding Tax account. Register online through the Taxpayer Access Point, TAP​. Go to TAP and select "Register Now."

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How long does it take to complete registration?

Account information is available to you within minutes upon completing registration information in TAP. ​

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What kind of information do I receive from the DOR after I register?

You will receive a letter including information about Withholding Tax, due dates and filing requirements.​

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How do I know how much Income Tax to withhold from my employee’s salary?

Each employee must provide you with a completed and signed Form 89-350, Mississippi Employees Withholding Exemption Certificate. You should use these forms along with the tax tables to determine how much Income Tax should be withheld from each employee’s paycheck.​

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What if an employee wants to change their withholding amount?

Employees may change their Mississippi and Federal withholding rates by completing a new Mississippi Form 89-350 and Federal Form W-4. ​

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How do I file Withholding Tax returns?

All taxpayers are encouraged to file and pay your tax returns electronically through TAP. Withholding Taxpayers with a liability of $20,000 or more for any reporting period are required to file and pay your tax returns electronically. A tax return must be filed for each reporting period even if no tax is due.

For Withholding Tax, bulk filing through the FSET program (Fed/State Employment Taxes) is available. If you use a software package, it is likely your software company is participating in FSET and has the capability to transmit returns and payment information to the DOR in bulk. If so, you will not need to use TAP to file and pay. ​

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Who do I contact about Unemployment Taxes?

For questions concerning Unemployment Tax, please contact the Mississippi Department of Employment Security located at 1235 Echelon Parkway, Jackson, MS. Their mailing address is P.O. Box 1699, Jackson, MS 39215-1699 and phone is 601-321-6000 or toll-free at 1-888-844-3577 and web site is www.mdes.ms.gov.​

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Who do I contact for information about Worker’s Compensation?

The Mississippi Workers' Compensation Commission is located at 1428 Lakeland Drive, Jackson, Mississippi, 39216. Their mailing address is P. O. Box 5300 Jackson, MS 39296-5300 and can be reached toll-free at (866) 473–6922 or online at www.mwcc.State.ms.us​

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Where do I pay social security taxes?

For information on Social Security taxes, please contact the Social Security Administration, 1(800) 772-1213 or online at www.ssa.gov.​

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Can I use my Federal Employer’s Identification number (FEIN) as my Mississippi Withholding Tax account number?

No, Mississippi uses a unique 8-digit number to identify each tax account. Your FEIN is used in the registration process to identify the taxpayer entity. ​

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How do I get a FEIN?

A FEIN is issued by the Internal Revenue Service. The application, Form SS-4, is found on the IRS website, www.irs.gov. ​

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How do I file Withholding Tax returns?

All taxpayers are encouraged to file and pay your tax returns electronically through TAP. Withholding Taxpayers with a liability of $20,000 or more for any reporting period are required to file and pay your tax returns electronically. A tax return must be filed for each reporting period even if no tax is due.

For Withholding Tax, bulk filing through the FSET program (Fed/State Employment Taxes) is available. If you use a software package, it is likely your software company is participating in FSET and has the capability to transmit returns and payment information to the DOR in bulk. If so, you will not need to use TAP to file and pay. ​

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My employer is not Withholding Tax or will not provide me with a W2 form. What should I do?

Contact the Withholding Tax Section at (601) 923-7088 or your local District Office.  Please provide the employer’s name, address, phone number and number of employees.​

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I have an employee that refuses to complete the State withholding certificate. What do I need to do?

You must withhold as if the employee is single with no deductions.​

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As an employer, am I responsible for determining if the withholding certificate completed by my employee is correct?

No. However, if you believe that the amount of allowances claimed by an employee is greater than the amount to which the employee is entitled, you should advise the Department of Revenue. If the employee claims more than 10 allowances or claims “exempt” for withholding and the wages normally exceed $200 per week, you must submit a copy of the employee’s withholding certificate to the Department of Revenue. ​

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I am a Mississippi resident, but I work in another State. Is my employer required to withhold Mississippi Income Tax from my salary?

Someone who is a resident of Mississippi is subject Mississippi Income Tax on all of his wages, whether he works in Mississippi or in another State. A Mississippi resident that works in another State that has an Income Tax will pay Income Tax to that other State. The employer should withhold that other States Income Tax not Mississippi. When the employee files the Mississippi Resident Individual Income Tax Return (after filing a non-resident return in that other State), we will give a credit for taxes paid to that other State. It might not be dollar for dollar as there are limitations.

In order to be allowed this credit, you must file an Income Tax return with the other State, and attach a copy of this return to your Mississippi return. The withholding amounts shown on your W2 forms are not the same as actual tax paid to the other State. Copies of withholding Statements are not sufficient to establish the credit.

Refer to the Instructions for Resident and Non-Resident Individual Income Tax on Form 80-100 for additional information.​

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I am not a resident of Mississippi, but I work in Mississippi. Is my employer required to withhold Mississippi Income Tax from my salary?

Yes. A non-resident employee is subject to Mississippi Income Tax on his or her salary paid for work performed in this State. Employers must withhold Mississippi Income Tax from all wages earned by non-resident employees for services performed in Mississippi, unless their Mississippi earning for the year will be less than their standard deduction amount for their filing status. non-resident employees with wages greater than their standard deduction amount are required to file a Mississippi non-resident return. ​

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I’m trying to file a prior year’s Income Tax return, but I don’t have my W2. Can you send me a copy?

No. You should contact the employer who issued the W2 for a duplicate copy. ​

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I withheld Mississippi taxes for one of my employees that I should have withheld for another State. What should I do?

Reimburse your employee for the taxes withheld in error and file amended returns for each month affected. When your amended returns are processed, you may use the overpayment as a credit against the amount due on your next return.  If you cannot use the credit, you may apply for a refund.​

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What information should I provide my employees for their records?

You should provide each employee with a Statement of the amount of State Income Tax withheld. This is usually shown on the Federal Wage and Tax Statement (W2). A copy of the W2 should also be sent to the Department of Revenue.  More information can be found here.​

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How do I amend Form W2?

To amend Form W2, you must obtain Form W2C from the Internal Revenue Service and submit a copy to the Department of Revenue along with a new Form 89-140, which can be found here.​

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Does Mississippi require a copy of Form W2C?

Mississippi only requires a copy of Form W2C if there is a change in Mississippi wages and/or withholding. Submit W2Cs in the same format the original W2s were sent.​

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How do I know if a worker is an employee or an independent contractor for Withholding Tax purposes?

The Department of Revenue relies on the determination of the IRS following instructional materials made available to the employer. ​

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How do I know if a worker is an employee or an independent contractor for Withholding Tax purposes?

The Department of Revenue relies on the determination of the IRS following instructional materials made available to the employer. ​

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Do I have to withhold Mississippi Income Tax from compensation paid to Native Americans?

In most situations yes, however, under Federal Law a Native American living and working on an Indian Reservation in Mississippi is exempted from Mississippi Income Tax on that compensation, thus no withholding is required.

The employer may contact the Withholding Division for a form which the employer must have the employee complete and be maintained by the employer to support the exempt status of the employee. ​

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Is Mississippi Income Tax withholding required on pensions and annuities?

No, retirement income, pensions, annuities are not subject to Mississippi Income Tax.​

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I have hired a sitter or someone to help in my home, am I required to withhold Income Tax from their wages?

Domestic help in the home is exempt from the Withholding Tax requirements​.

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Does Mississippi require withholding on Section 125 or Cafeteria plans?

This is considered pre-tax dollars and not subject to withholding.​

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Are wages paid to corporate officers subject to withholding?

Corporation officers are considered employees of the corporation. Payments for services performed for the corporation are subject to withholding (whether S corporation or C corporation). True dividends, usually paid no more than once a year, are not subject to withholding.​

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We have employees receiving severance pay. Is this Income Taxable to the recipient?

Yes.​

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Each year I give my employees a Christmas Bonus. How do I withhold?

If supplemental wages such as commissions, bonuses, or overtime pay are paid at the same time as the employee's regular wage, the amount of tax withheld should be based on the total of the regular and supplemental wages.​

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Am I required to withhold on tip income?

All tips are subject to Income Tax. Tips paid by the customer to the employee are not subject to Withholding Tax. Tips paid by the customer to the employer who then distributes them to the employees are subject to withholding.​

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Are wages paid to immediate family members subject to withholding? How about children under the age of 18?

Yes. Wages paid for work performed by family members are subject to withholding. This includes your spouse, parent, siblings, and children under the age of 18.​

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When are Withholding Tax returns due?

Withholding returns are due the 15th day of the month following the period. If a due date falls on a Saturday, Sunday, or legal holiday, the due date becomes the next business day.

Withholding Tax returns are filed monthly or quarterly depending on the average amount of tax you withhold each month. You will be notified of your filing status. Generally, every employer with average liability of $300 or more per month must file a monthly tax return. Employers with smaller tax liabilities may file quarterly returns. ​

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What is the due date for filing W2 information electronically?

All W2s filed electronically are due on or before January 31.

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What is the due date for filing 1099 information?

Electronic filing is due on or before March 31.  All 1099 paper forms and the accompanying Annual Information Return Form 89-140 are due by February 29.

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What is the due date of 1099 MISC?

If filing through TAP, the due date is March 31; if filing by paper, the due date is February 29.​

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Does Mississippi grant extensions for filing W2s?

Yes. Extension requests must be filed by the due date of the W2 information. Send the request to Withholding Division PO Box 1033 Jackson MS 39215-1033.​

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What are the penalties for filing late?

There is a 10% penalty for late payment of the tax due plus interest at the rate of 9/10 of 1% per month from the date that the tax was due.​

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Where do I get the Mississippi W2 forms and the 1099 information return forms?

Mississippi uses the Federal forms which you can get from the Internal Revenue Service. ​

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I didn’t have any employees during the last reporting period. Do I still need to file a return?

Yes. You will need to file a zero return in order to avoid receiving a delinquent notice for failure to file. You should file a zero return and submit the return on or before the due date.​

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I made an error when I filed my return or report. How do I correct it?

You can amend a return or report in TAP. Select "View Return" and then choose "Change" from the menu on the left. Complete the form the way it should have been filed.  This will replace the original return or report.​

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Does Mississippi use a depository system for withholding like the Internal Revenue Service?

No. Tax withheld must be paid directly to the Department of Revenue when it is due. ​

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I’m trying to file a prior year’s Income Tax return, but I don’t have my W2. Can you send me a copy?

No. You should contact the employer who issued the W2 for a duplicate copy. ​

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What type of media does Mississippi accept for W2 data files?

TAP is available to file W2's.​

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Is electronic reporting of W2 data voluntary or mandatory?

Employers that issue 25 or more W2s are required to submit those electronically to the DOR. The taxpayer may be subject to penalties if they issue more than 25 W2s and do not file as required. You can manually enter or upload your W2s on TAP. Log into TAP, under “My Actions” select “Submit W2 Returns” and follow instructions to manually key or attach a W2 file. All employers, regardless of the number of returns, are encouraged to utilize the system to electronically enter and submit return information. Additional information can be found here.​

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How can I submit my withholding information if I have QuickBooks or Peachtree?

QuickBooks or Peachtree users submit the file using the Social Security Administration Format.. ​

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What are Mississippi's requirements for reporting miscellaneous income?

All individuals, businesses and corporations who are required to report:

• payments made to a non-resident of rents, royalties, commissions, prizes, awards or other forms of compensation in the amount of $600 or more; 
• other forms of fixed or determinable gains, profits; or 
• income with an annual combined worth of one thousand two hundred dollars ($1,200) or more from a Mississippi source, which is not subject to withholding and not a part of information report of S corporations or partnerships. 
Mississippi participates in the combined Federal/State reporting of information program.​

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How do you report miscellaneous income?

Employers that issue 25 or more 1099s are required to electronically submit those through TAP. The taxpayer may be subject to penalties if they issue more than 25 1099s and do not file as required. Logon to TAP, under “My Actions” select “Submit 1099 Returns” and follow instructions to manually key or attach a 1099 file. All employers, regardless of the number of returns, are encouraged to utilize the system to electronically enter and submit return information. A copy of Federal Form 1099 MISC is used for reporting Mississippi miscellaneous income for employers that issue less than 25 forms.​

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What records should I keep for Mississippi tax purposes, and how long should I keep them?

You must keep a complete copy of all records pertaining to your business for a minimum of three years so the Department of Revenue can determine how you computed your tax liabilities. The required records include, but are not limited to, all payroll and withholding information, a listing of who is employed by the month, week, or day, salaries paid, employee’s social security numbers and home address.

Your records must be kept in a place and manner easily accessible for review by Department of Revenue representatives. ​

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My Federal identification number changed. Do I need a new Withholding Tax account?

If your Federal identification number changes, you need to apply for a new State Withholding Tax account by filing the registration application.​

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I purchased an existing business. Can I use the previous owner’s withholding account number?

No, you must register for a new withholding account. It is your responsibility to notify the Department of Revenue of any changes related to your business including changes in your address, changes in corporate officers, or changes in ownership.​

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I am a sole proprietor and have opened another business. Do I need another Withholding Tax account number?

A sole proprietor files all his business withholdings under one number.  You do not need to apply for another Withholding Tax number unless that business is operating under a different Federal identification number than the sole proprietor.


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I am presently a proprietorship (or partnership.) Do I need to obtain a new withholding account if I should incorporate?

Yes, you must register for a new withholding account. It is your responsibility to notify the Department of Revenue of any changes related to your business including changes in your address, changes in corporate officers, or changes in ownership.​

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If I change the trade name of my business, do I need to get a new withholding account?

No. However, you should advise the DOR in writing of the details and the date the changes were made.​

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Are non-profit organizations required to withhold tax from their employees?

Yes. non-profit organizations, such as charitable, religious and governmental organizations, are required to withhold Mississippi Income Tax.​

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How do I close my Mississippi Withholding Tax account?

Notify the Department of Revenue and file a final return when you want to close your withholding account whether the business closes or is sold.  Logon to your account in TAP and select "Close Account Request" found on the left.   Or, you can notify the Withholding Division by fax at 601-923-7094.  If sending the fax, allow two weeks after the last return has been filed to ensure the last return has been processed.  Please indicate the reason for closing the account.  If the account is closing due being sold, include the Name and FEIN of the company that is closing and the new owner's Name, Address and FEIN (if applicable).  Include the specific date that the last wages were paid to employees in Mississippi and request that the account be closed.  Finally, please include your contact information in the event of a problem closing the account. 


If you are not closing your business, but no longer have employees, you may continue to file zero returns or ask that the account be closed.You need to file W2s for any wages paid during the year.​

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How do I change my address or other information?

Logon to your TAP account and follow instructions for updating your account information.  If you are not able to update your information online,  you may fax a request on your letterhead showing the name, FEIN, current address and then new address. The fax number is 601-923-7094.​

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