Mississippi payroll taxes for employers (2026)

Where Mississippi payroll rules differ

Workers comp is the threshold to watch. Under the Mississippi Workers' Compensation Commission's fact sheet, coverage is required once you regularly employ 5 or more people, and smaller employers may choose to buy it. That fact sheet dates from 2013, so confirm with your agent. Many states require coverage from the first hire, so a Mississippi business with 3 or 4 staff has a decision to make that a Louisiana one does not.

• Income tax is falling: the Department of Revenue rate table shows 4.0% on taxable income over $10,000 for 2026 and 3.75% for 2027. The same page also says the 4% rate was eliminated for 2024 and later, so the page contradicts itself; we follow the year-by-year table.
• New hire reports in 15 business days from the first day of work, through ms-newhire.com, the directory MDES links to.
• Pay every two weeks or twice a month: the US DOL payday table lists biweekly or semimonthly for Mississippi.
• No state final pay statute: wages are due on the regular payday under the federal default, per Teambridge (a secondary source).
• Federal minimum wage applies: Mississippi has no minimum wage law, so it is $7.25 and a $2.13 tipped cash wage.
• No paid leave or disability program, and Harbor Compliance (secondary) reports no state PEO registration.

We found no construction new employer rate and no surcharge for Mississippi in the 2026 sources, so we do not quote either.

Mississippi employer payroll facts at a glance

Running the numbers on a $50,000 Mississippi employee

The SUTA line is the smallest part of the bill. Federal Social Security and Medicare make up almost all of it.

MDES experience rates run from 0.00% to 5.40%. Even at the 5.40% ceiling, SUTA on the $14,000 base is $756.00, which would make the total $4,623.00. To compare the $14,000 base with nearby states, see the 2026 SUTA rate table or read how employer payroll taxes work.

Signing up with MDES and the Department of Revenue

1. Get a federal EIN from the IRS.
2. Register for unemployment tax with MDES (mdes.ms.gov, Employers, Unemployment Tax, Register).
3. Register for income tax withholding with the Mississippi Department of Revenue.
4. Report each new hire within 15 business days.
5. Decide on workers comp: required at 5 regular employees, optional below that.

Choosing payroll help in Mississippi

With one state income tax, no local wage tax in our data (we did not verify that on an official list) and a 1.00% starting SUTA rate, Mississippi does not need a specialist. Pick on price and support. The one setting to check is the 2027 income tax change to 3.75%, which your provider should load in January.

See monthly fees side by side in our payroll software comparison. If you are near the 5-employee workers comp line and want coverage bundled with benefits, a PEO can do both: compare the top PEOs. Hiring in neighboring Louisiana or Alabama? Their rules differ.