Missouri Works Program

by Natalie Tocco, Mueller Prost

Is your business growing?  Are you planning on hiring additional full time employees?  If so, you may be eligible to participate in the Missouri Statewide Works Program, one of several Missouri Works Programs designed to provide tax incentives to qualified companies creating new jobs in Missouri.  Details of the program are outlined below.

Eligibility: Eligible applicants can be for-profit or non-profit businesses and can be new or existing Missouri companies.

The business must apply to the program by filing a Notice of Intent (NOI) with the Missouri Department of Economic Development.  Once approved, the NOI will determine the business' base employment number.  The business will only be able to claim qualified new job incentives for hires beyond the base employment number.  Likewise, any decrease in employment will reduce the new jobs by the same amount.

"Qualified new jobs" must be:

  • Created after the date of the NOI,
  • Full-time (average 35 or more hours per week each year),
  • Where the business offered and pays at least 50% of health insurance premiums, and
  • Paid at least 90% of the average county wage ($44,810 for St. Louis County until 7/1/2016).

Incentives:  Once ten qualified new jobs are met, the program allows for the business to retain Missouri income tax withholding with no annual limit, that otherwise would have been remitted to the State, on qualified new jobs for five years.  An additional year of retention is available to companies that have been in business for ten or more years.  In addition to withholding retention, discretionary tax credit benefits may be available.

Limitations:  A qualified business does not include food and drinking places, gambling establishments, store front consumer based retail trade establishments, educational services, religious organizations, public administration, ethanol or biodiesel production or health care and social service companies.

A business may not receive benefits of the program if it is receiving benefits from similar Missouri tax credit programs, is delinquent in the payment of taxes or has filed or publicly announced filing bankruptcy.

Reporting:  The business must submit annual reporting documentation to the state under the program.  Benefits may cease in the event the minimum new jobs has not been maintained.

We hope you find this information to be helpful.  As always, we are here to help.  If we can provide assistance or answer questions regarding this issue or on any other topic, please feel free to contact us.

How may we help you?

 

Accounting News