Paycheck Calculator Mississippi - MS

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Mississippi - MS Paycheck Calculator: Hourly and Salary

Mississippi, also known as "Magnolia State", is a US State located in the southern region of the country, having Mississippi River on its west, The Gulf of Mexico on the south, and Alabama State on its east. The State is known for its beautiful magnolia trees, blue music, and plenty of other one-of-a-kind experiences.

So if you are planning a move to Mississippi from another state? Or got a new job offers in MS? Maybe you're thinking of relocating your business? No matter what your reasons are to move to Mississippi, this guide will educate you with everything you need to know before and after the relocation.

Our guide includes:

  1. An overview of things you must know before moving to Mississippi.
  2. All Payroll Facts, Paycheck Calculation Guide, and Payroll Laws that would help you to compare different job offers, and choose what's best for you in terms of Take-Home Pay. Moreover, Small business owners, planning to relocate their business in Mississippi, will also have benefits to deduce their employment cost.
  3. Answers to most Frequently Asked Questions related to the Magnolia State.

So let's get started!

5 Thing You Must Know Before Moving to Mississippi:

There are always some triggering things that push us to finalize our decisions. And for the motivation to move to Mississippi, following are those triggering points:

Cost of Living:

Mississippi state enjoys the title of "one of the cheapest states to live in" due to its significantly lower cost of living of 81.1 points, compared to the national average of 100 Points. Housing is one of the significant factors to cheaper cost, whereas utilities, health, and grocery are almost near to the national average.

Cost of Housing:

Unfortunately, people are migrating out of the state for better jobs and education, which has directly impacted the Housing Market. The median house value in the state is $120,300, and the median rent is $1100. However, the housing in a state has managed to revive with time and shown a growth of 7.7% in 2019.

Education:

The Mississippi State has over 50 colleges, technical colleges, and universities that are mainly accessible to all citizens, with more than half of them in Jackson City. The state ranks 13th with the average cost of college tuition for residents, and their higher education is among the cheapest in the nation.

Weather:

The weather in Mississippi is hot and humid, with heavy rainfalls and frequent thunderstorms, tropical storms, and hurricanes, and the temperature usually ranges between 48 °F and 81 °F. The overall climate is humid subtropical with long summers and short, mild winters.

Business and Job Opportunities:

Job and Business Opportunities in the Magnolia state are not that appealing. The state experienced a massive economic crisis in 2008 and is still struggling to recover. The Unemployment rate in the state currently is lowest than it has seen in years at 4.5%, and is ranked on 46th position for "best states for the job and economic opportunities."

So these were some honest facts and reviews about the state. If you have made up your mind to relocate, then you must continue reading to explore Mississippi Paychecks.


How to Calculate Paycheck in Mississippi?

Paycheck calculation goes through several steps, including gross wage determination, federal and state payroll tax deductions, while complying with all federal and payroll laws. But before jumping to the calculation steps, you must go through the following Mississippi Payroll facts:


Mississippi Payroll Facts:

  • The federal charges Income tax to Mississippi residents at the rate ranging from 10% to 37%, which is distributed in seven tax brackets depending on filing status and income level.
  • The federal also charges FICA taxes of total 15.3%, where 12.4% is Social Security Tax and 2.9% of Medicare Tax, Half of each tax is paid by the employee, and the other half is funded by the employer (for each employee). Moreover, if the employee's annual income crosses the defined threshold, then additional Medicare surtax of 0.9% is also charged to the employee only.
  • The Mississippi State also charge state income tax to its residents, at progressive rates ranging from 0% to 5%, having three tax brackets depending on income level, and regardless of filing status.
  • No city or county in the Mississippi State levies local income tax to its residents.
  • The state doesn't charge in Mississippi State Disability Insurance (SDI) Tax. However, it does require the employers to pay Mississippi State Unemployment Insurance (SUI) tax at the rate ranging from 0% to 5.4% on a first $14,000 earned in wages by each employee in a year. However, new employers are given relief as they only have to pay 1.20% in the first year, 1.30% in the second year & 1.40% in the third year of starting the small business. Additionally, the employer may require to pay 0.20% of workforce investment and training contribution.
  • Mississippi State doesn't regulate Minimum wage. Therefore, the employers are required to pay at least the Federal Minimum wage rate of $7.25 to their employees. Moreover, the Tipped employees must be paid at least the cash minimum wage rate of $2.13, with the maximum tip credit of $5.12.
  • Both Federal FLSA and Mississippi State Law require the employers to pay overtime to non-exempted employees at the rate of 1.5 x Normal pay rate for all hours above 40 in a single workweek.
  • The Magnolia state doesn't have any reciprocal agreement with any other state, so non-residents workers working in Mississippi are required to pay tax there.
  • The Living Wage in Mississippi for a single adult with no child is $11.04, and for a couple (one working) with two children is $24.25, According to the Massachusetts Institute of Technology.
  • The average annual salary in Mississippi is $59,037 ($28 per hour), which is significantly lower than the national average of $66,626 per year.
  • The Median Household Income for Mississippi Resident, according to the US Census Bureau, is $43,567.

As we are done with relocation to Mississippi and its payroll facts, now it's time to calculate paycheck. This paycheck calculation can help you compare different job offers, your take-home pay from your job in Mississippi, or your employment cost as an employer.


Step 1 - Calculating Gross Pay:

The very first step to calculating the paycheck amount is to determine Gross Pay. It is a wage that an employee earned in the last pay period.

Gross Pay is calculated differently for both hourly and salary-based employees, which is discussed in detail as follow:

Gross Pay for Hourly Employee

Hourly Employees are paid at a mutually agreed pay rate for each hour they work in a pay period. Usually Pay periods for Hourly employees are Hourly, Daily, Weekly, and Bi-Weekly. However, the Federal, State, and Local Wage law requires the employers to set the pay rate equals to or more than the defined Minimum Wage Law for the non-exempted employees.

Hourly employees are also entitled to receive overtime, for each excess hour worked after regular hours in a workday or a workweek. Remember, like Minimum wage, the employers are also required to follow Overtime wage law provided by the federal, state, or local authorities.


Note: All the relevant laws are discussed in detail ahead.


To calculate gross wage for an hourly employee:

  1. Calculate total hours worked in a Pay Period using the data from Timesheet or Timecard.
  2. Multiply Total Hours worked with the Hourly Rate (Pay Rate).
  3. Add overtime hours (if any) worked by the employee.

Quick Tip: You can also use our Timecard with overtime Calculator to calculate Gross Wage for Hourly Employee instantly.


Gross Pay for Salaried Employee

Salaried Employees are paid at the flat amount rather than on an hourly basis. The amount is usually mutually agreed as an Annual Salary, which is then paid in Semi-monthly or Monthly Pay periods.

Salaried employees are mostly exempted from overtime law. However, their salaries must be according to Federal and State Minimum Wage law.

To calculate Gross Pay for Salaried Employees:

  • Divide the "employee's salary" by "number of pay periods." For example: If the employee's annual salary is $25000 and is paid on a semi-monthly pay period, then the employee's Gross Pay would be: $25000 / 24 = $1042.

Don't forget that Supplemental Wages like Bonuses, commissions, tips, paid leaves, fringe benefits, or other taxable wages earned by the employee must be added into the Gross wages.


Step 2 – Subtracting Pre-Tax Deductions (If Any):

Once you are done with Gross Wages, it's time to subtract any Pre-Tax deductions from the gross wage to get taxable wages as Pre-tax deductions are not taxable for federal payroll taxes.

Pre-tax deductions are offered to the employees as benefits like fringe benefits, HSA plans, etc., to reduce their taxable income, hence, increasing their take-home pay amount. Remember, not all benefits are exempted from taxes, so choose the pre-tax deductions wisely.

Some of the common pre-tax deductible benefits are:

  • FSA - Flexible Spending Accounts
  • HSA - Health Savings Accounts
  • Retirement savings accounts like a traditional 401(k)
  • Some of the Fringe Benefits
  • health insurance
  • accident insurance
  • dental and vision insurance
  • Commuter Benefits
  • Short-Term Disability

Note: Pre-Tax deduction rate, contribution limits, special tax withholding rules change from year to year, according to inflation and costs of living by the federal government. Therefore, you must keep yourself updated with all rates before making any deductions.

Many Taxpayers find it hard to itemize their deductions to calculate taxable wages, for which they go for standard deductions, that varies according to the filing status, as shown in the table below:

All Filers(Updated Dec 2019)
Filing Status Standard Deduction Amount
Single Filers $12,200
Married, Filing Jointly $24,400
Married, Filing Separately $12,200
Head of Household $18,350

Step 3 – Calculate and Subtract Federal Taxes:

Once you have determined the taxable wages, it's time to deduct Federal Income taxes for the Taxable wages.

IRS requires the employers to withhold federal income tax from the employee's paycheck, according to the details provided by the employee on Form W-4. The employee fills this form at the start of the job. The form includes all the necessary information, including income, number of allowances to claim, number of dependents, amount of additional taxes to deduct, and much more.

The employees are required to keep their Form W-4 up to date with all their current information, especially marriage, divorce, or child's birth.

The federal income tax is charged according to the tax brackets in which the taxpayer's income falls. The latest income tax brackets and rates are as follow:

Single Filers
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,400 10%
$19,400 - $78,950 12%
$78,950 - $168,400 22%
$168,400 - $321,450 24%
$321,450 - $408,200 32%
$408,200 - $612,350 35%
$612,350+ 37%

Married, Filing Separately
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $306,175 35%
$306,175+ 37%

Head of Household
Taxable Income Rate
$0 - $13,850 10%
$13,850 - $52,850 12%
$52,850 - $84,200 22%
$84,200 - $160,700 24%
$160,700 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%


Step 4 – Deduct FICA Taxes:

Besides, Federal Income Tax, the IRS also requires the employer to withhold FICA tax (15.3%) for the employee's paycheck and also requires the employer to pay an equal amount for each employee.

Federal Insurance Contributions Act (FICA) Taxes comprises of two types of taxes which are as follow:

  1. Social Security:

A total of 12.4% of social security tax is charged from which 6.2% is withheld from the employee's gross, and the employer pays the matching 6.2%. However, Social Security is only charged on the maximum taxable earnings of $137,700 for 2020.

  1. Medicare:

A total of 2.9% of Medicare is charged, from which 1.45% is withheld from the employee's gross, and the employer pays the matching 1.45%. Unlike Social Security, there is no maximum table earning limit for this tax. However, an additional surtax of 0.9% is charged as Additional Medicare Surtax on the employees having income over the specified level along with filing status, which is as follow:

Income Over Filing Status
$250,000 Married Filing Jointly
$125,000 Married Filing Separately
$200,000 Single

Note: Employers are not required to pay an equal amount for Additional Medicare Surtax.


Step 5 – Payment of FUTA Taxes

IRS requires the employer to pay another tax, known as The Federal Unemployment Tax Act (FUTA) Tax. This tax is paid at the rate of 6% on the first $7000 earned by each employee in a year. However, the IRS doesn't require the employees to contribute to it.

The employers who pay State Unemployment Insurance (SUI) tax in full and on time are given relieving FUTA tax credit of up to 5.4%, which saves a whopping 90% from FUTA Tax.


Step 6 – Subtract Post-Tax Deductions (If any):

Post-tax deductions (after-tax deductions) is an amount the employer takes out from the employee's paycheck after taxes. Therefore, it does not affect taxable wages and the amount of tax payable.

Here are some of the types of post-tax deductions that employee may voluntarily choose:

  • Charitable contributions
  • Disability insurance
  • Garnishments
  • Specific Retirement Plans like Roth 401(k)
  • Life Insurance

Step 7 – Withhold State Payroll Taxes:

As you are done with Federal Payroll Taxes, now it's time to discuss State Payroll Taxes. The very first State Payroll Tax is State Income Tax charged by Mississippi State on employee's paycheck. Another one is State Unemployment Insurance (SUI) tax that is to be paid by the employers only.


Mississippi State Income Tax

Like Federal Income tax, Employers are required to withhold State Income tax from the employee's paycheck, at the rates ranging from 0% to 5%, distributed in 4 tax brackets depending only on Income Level, regardless of filing status.

All Filers
Mississippi Taxable Income Rate
$0 - $1,000 0%
$1,001 - $5,000 3%
$5,001 - $10,000 4%
$10,001+ 5%

This tax should be charged according to the details, including the number of allowances to claim, a number of dependents, additional state withholding amounts, etc. provided by the employee Form 89-350. Besides Form W-4, this form must also be updated regularly by the employee, especially on significant events like marriage, child's birth, or divorce.


Employees can claim Exemptions and Standard deduction from their State Income tax that would reduce their taxable income and increase their take-home pay. The standard deduction rates are as follow:

Exemption and Deduction Schedule
Filing Status Exemption Standar Deduction
Single $6,000 $2,300
Head Of Family ($8,000 + $1,500) $9,500 $3,400
Married $12,000 $4,600

State Unemployment Insurance (SUI) Tax

The State Unemployment Insurance (SUI) Tax is an employer-funded program that provides temporary income to unemployed workers who have lost their job without fault of their own.

The state doesn't charge in Mississippi State Disability Insurance (SDI) Tax. However, it does require the employers to pay Mississippi State Unemployment Insurance (SUI) tax, at the rate ranging from 0% to 5.4% on a first $14,000 earned in wages by each employee in a year. However, new employers are given relief as they only have to pay 1.20% in the first year, 1.30% in the second year & 1.40% in the third year of starting the small business. Additionally, an employer may require to pay 0.20% of workforce investment and training contribution.


Step 8 – Withhold Local Payroll Taxes:

No City or County in Mississippi State levy Local Income tax on to its resident or non-resident employees.


Step 9 – Calculate Pay Check:

Now that you are done with all payroll taxes and calculated the net take-home pay of an employee, it's time to cut the paycheck. Moreover, you, as an employer, must pay your portion of FICA tax along with FUTA and SUI tax in full and on time regularly.


Federal and Mississippi Payroll Laws:

  • Manufacturing businesses in Mississippi, having 50 or more employees and public service corporations must pay their employees at least twice each month (Semi-Monthly), every other week (Weekly), or on the second and fourth Saturdays of the month. Moreover, Paydays for the employees must not be more than 10 days after the pay period ends, except Public service employees are allowed to be paid within 15 days. However, administrative, bona fide executive, and professional employees from the State Pay Frequency Law.
  • There is no Mississippi Minimum wage law, so employers are required to follow Federal Minimum wage law, which requires them to pay at least the minimum wage rate of $7.25 to their non-exempted employees. The employees that are exempted from this law are:
    1. Tipped Employees: The employees who make more than $30 per month in tips are allowed to be paid a cash minimum wage rate of $2.13, with the maximum tip credit of $5.12.
    2. Fishermen, elementary school teachers, babysitters, taxicab drivers, and agricultural workers.
    3. Minor Employees: New employees of age under 20 are allowed to be paid a minimum wage rate of $4.25 for the first 90 days of employment.
    4. Students: Full-time high school or college student, is allowed to be paid the minimum wage rate of as little as $6.16 per hour (85% of the Mississippi minimum wage), for up to 20 hours in a workweek at certain employers like work-study programs at universities.
  • There is no State Overtime law in Mississippi. Wherefore, the employers are required to follow Federal FLSA overtime law that requires the employers to pay non-exempted employees overtime at time and a half of regular hourly rate for all hours worked after the first 40 in a week. However, managerial employees, outside salespeople, and certain salaried professionals are exempted from the FLSA Overtime law.
  • In Mississippi, paid leave, such as vacation time, holidays, sick days, or paid time off (PTO) benefits are discretionary on the employer. However, employers may be required to offer unpaid leaves to their employees for specific reasons like Family and medical leave (under FMLA), Military leave (under USERRA), Military family leave (under FMLA) or Jury duty.
  • Both Mississippi labor laws and Federal FLSA law don't require the employer to provide either a lunch period or breaks. However, if the employer chooses to do so, then it must be PAID if for 20 minutes and UNPAID if for 30 or more minutes.

FAQs

Answer: These are the taxes that are taken out of the employee's paycheck working in Mississippi:

  1. Federal Income Tax: This tax is withheld at the rate ranging from 10% to 37%, distributed in seven tax brackets depending on filing status and income level.
  2. State Income Tax: This tax is withheld at the rate ranging from 0% to 5%, having four tax brackets depending on income level, regardless of filing status.
  3. FICA Tax: This tax is charged by the federal, comprised of two taxes: Social Security (6.2% paid by the employee and Medicare (1.45% paid by the employee). The employee may also be charged with an Additional Medicare surtax of 0.9% if the income exceeds the defined threshold.

Answer: Both employers and employees are subjected to payroll taxes in Mississippi, as stated below:

  1. Federal Income Tax: This tax is charged on employees at the rates ranging from 10% to 37%, distributed in seven tax brackets depending on the income level and filing status.
  2. FICA Tax: This tax charged by the federal on both employers and employees. This tax comprises of two taxes, charged on the employees, and the employer pays the equal amount for each employee. The employee's portion comprises of 6.2% of Social Security Tax and 1.45% of Medicare Tax. Moreover, if the employee's income exceeds the defined threshold, they are also charged with the additional Medicare surtax of 0.9%. However, employers are not required to pay Additional Medicare surtax.
  3. State Income Tax: This tax is withheld only from the employee's paycheck, at the rate ranging from 0% to 5%, distributed in four tax brackets depending on income level, regardless of filing status.
  4. State Unemployment Insurance (SUI) Tax: Only employers in Mississippi are required to pay State Unemployment Insurance (SUI) Tax at the rates ranging from rates range from 0% to 5.40% on the first $14,000 earned by each employee. However, new employers are given relief as they only have to pay 1.20% in the first year, 1.30% in the second year & 1.40% in the third year of starting the small business. Additionally, an employer may require to pay 0.20% of workforce investment and training contribution.

Answer: Yes, both residents and non-residents working in Mississippi, are required to pay state taxes, unless their Mississippi annual earnings will be less than their standard deduction amount, deduced according to their filing status. They are required to pay taxes at the rates as follow:

  • 0% on the first $1,000 of taxable income.
  • 3% on taxable income between $1,001 and $5000.
  • 4% on taxable income between $5,001 and $10,000.
  • 5% on taxable income of $10,001 and above.

Answer: The average Annual Salary in Mississippi is $59,037, whereas the national average is $66,626 per year.

Answer: The average Hourly Wage in Mississippi is $28 per hour (which is equal to $59,037 annual wage).

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