An effort is made to tax employers as little as possible while at the same time provide essential benefits to workers who are unemployed through no fault of their own and who are able, available, and actively seeking work. The State Unemployment Insurance Laws must conform to certain standards in the federal Employment Tax Law administered by the United States Department of Labor. By conforming to these laws, Missouri employers are allowed to take a credit on federal unemployment tax returns, if state taxes are paid timely. This credit is allowed regardless of an employer s state tax rate. Companies can offer this protection through a private insurance carrier or they can become self-insurers.
Premium rates vary, depending on the risks associated with special occupations.
As in most states, the premium rates apply to an employee's total annual salary. The maximum weekly benefit for temporary total disability, temporary partial disability, permanent total disability and death is currently computed as 105 percent of the average weekly wage, determined annually on July 1. Missouri's worker's compensation rates compare favorably with those in other states. Though benefits for claimants in other states usually increase automatically from year to year, in Missouri benefits cannot be increased without the review and approval of the state legislature. In making the decision to enter into a new business venture, workers' compensation liability should be a primary area of concern.