Average annual payroll defined
This law explains how to figure out an employer's 'average annual payroll' for unemployment tax purposes. Normally, it is one-third of all taxable wages paid over the last 36 months before July 1. If the employer has been in the system less than 36 months, it is based on just the last 12 months instead. Special rules apply if the employer paid no wages during any 6-month stretch — in that case, the payroll figure is calculated by doubling the highest 6-month period of wages paid.
288.124. Average annual defined. — The term "average annual payroll" as used in sections 288.113 to 288.127 means one-third of the total amount of paid for during the thirty-six months' period immediately preceding any July first ; provided, however, if an employer during any one in such period paid no wages for insured work, whether taxable or not, such employer's average annual payroll shall be twice the total amount of taxable wages paid by him in the calendar half year of such period wherein the taxable wages paid by him were highest, and except that for an employer who has been subject to the Missouri less than thirty-six months the term shall mean the total amount of taxable wages paid by him during the twelve-month period immediately preceding any July first calculation date. If an employer during any one calendar half year in such period paid no wages for insured work, such employer's average annual payroll shall be twice the total amount of taxable wages paid by him in the calendar half year during the twenty-four consecutive months preceding the July first calculation date wherein taxable wages paid by him were highest.
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Source & history notes
(L. 1951 p. 564 § 288.110, A.L. 1957 p. 531, A.L. 1965 p. 420, A.L. 1965 2d Ex. Sess. p. 927, A.L. 1967 pp. 396 and 401, subdiv. (1) of subsec. 1 of § 288.120)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.