Who to Report

This screen contains information about what services should be used to determine an employer's liability status and that should be reported by a liable employer.

Covered Employment

A general definition of "covered employment" means any services performed by an individual for remuneration under any contract of hire, unless otherwise specifically excluded under the Missouri Employment Security Law. Covered employment includes:

1. Services of part-time, temporary and casual workers, as well as regular workers;
2. Officers or stockholders who perform services for a corporation and receive remuneration;
3. Services of agent or commission drivers who personally distribute food and beverage products (other than milk) or who distribute laundry or dry cleaning for another person;
4. Services of traveling or city salespersons engaged on a full-time basis soliciting orders on behalf of an employer of merchandise for resale or supplies for use in a business operation; and
5. Services performed in a foreign country by an American citizen for an American employer located in Missouri.

Excluded Employment - General Business

Employment excluded from coverage under the law includes:

1. The delivery and/or sale of newspapers when one of the following applies:
   1. Wages to persons under the age of eighteen who deliver newspapers or shopping news are not reportable or taxable for state and federal unemployment taxes. This exemption applies to the typical house-to-house newspaper delivery or sale, and also extends to passing out handbills and other similar types of advertising material on the street. The exemption also covers remuneration for services incidental to the delivery of the newspapers, such as assembling the sections into complete papers. This exemption does not include the distribution of magazines or house-to-house distribution of merchandise samples for advertising purposes.
   2. Wages paid to an individual of any age for services performed as a direct seller in the trade or business of delivering or distribution of newspapers or shopping news are not reportable for state or federal unemployment taxes.
   3. Newspaper or magazine vendors of any age are excluded from state and federal unemployment taxes for services performed at the time of sale of the papers or magazines to the ultimate consumer. This is true even if the person is guaranteed a minimum amount of compensation and/or can sell back all unsold newspapers or magazines.
2. Services performed as a direct seller who is engaged in the trade or business of the delivering or distribution of newspapers or shopping news, including any services directly related to such trade or business or services, or services or a direct seller who is engaged in the business or trade of selling or soliciting sales of consumer products in a home, or otherwise than in or affiliated with a permanent fixed retail establishment, if 80% of remuneration received is directly related to such sales rather than the number of hours worked and sales are performed under a written contract that provides the seller will not be treated as an employee for federal tax purposes;
3. Services performed in the employ of a son, daughter, spouse, or by a child under the age of 21 in the employ of the child's father or mother. This includes legally adopted, step, and foster children and parents. If the business is a partnership, an exempt family relationship must exist between the worker and each partner in order for this exemption to apply. The exemption for family employment does not apply to the family of the officers or stockholders of a corporation;
4. Services as a licensed insurance agent or an insurance solicitor remunerated solely by commissions;
5. Services for which academic credits are given performed by an individual who is a student enrolled in a public or nonprofit school;
6. Services performed in the employ of a foreign government;
7. Services of a licensed real estate salesperson or broker, provided at least 80% of remuneration for services are directly related to sales performed rather than the number of hours worked, and the services are performed under a written contract that provides the individual will not be treated as an employee for federal tax purposes.
8. Services performed by an individual in a barber or beauty shop who pays rent or other payments to the owner or operator for use of the facilities;
9. A motor carrier whose operations are confined to a commercial zone or who is regulated by the Missouri Department of Transportation or by the United States Department of Transportation or any of its sub-agencies shall not be considered the employer of a lessor or of a truck driver paid by a lessor. Also excluded are services performed by owners who drive their own trucks for a contract or common carrier;
10. Workers covered by a federal unemployment insurance system (railroad workers and federal employees); or
11. Full time student working less than 13 weeks for an organized summer camp.

Excluded Employment - Churches and Religious Orders

1. Services performed in the employ of a church, or convention or association of churches;
2. Services performed in the employ of an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church, or convention or association of churches;
3. Services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of the ministry; and
4. Services performed by a member of a religious order in the exercise of duties required by such order.

Excluded Employment - 501(c)(3) Organizations and Governmental Entities

1. Services performed by individuals whose earning capacity is impaired by age or physical or mental deficiency or injury, if performed in a facility conducted for carrying out a program for rehabilitation of such individuals;
2. Services performed by individuals who, because of injury, physical or mental capacity cannot be readily absorbed in the competitive labor market, if performed in a facility whose purpose is to carry out a program of providing work for such individuals;
3. Services performed by an individual receiving work-relief or work-training if the program is assisted or financed in whole or in part by a federal agency or by an agency of the state or any of its political subdivisions;
4. Services performed in the employ of a nonprofit school, college or university by a student who is enrolled and regularly attends classes at such school, college or university;
5. Services performed by a student's spouse in the employ of a nonprofit school, college or university at which the student is enrolled and regularly attends classes provided the spouse is advised at the beginning of such services that:
   1. The employment is provided under a student-assistance program; and
   2. The employee is not covered by any program of unemployment insurance.
6. Services performed by an inmate of a custodial or penal institution; and
7. In the employ of a governmental entity if such service is performed by an individual in the exercise of duties:
   1. As an elected official;
   2. As a member of a legislative body or a member of the judiciary of a state or political subdivision;
   3. As a member of the state national guard or air national guard;
   4. As a temporary employee due to fire, storm, snow, earthquake, flood, or similar emergency;
   5. In a position designated by the laws of this state as a major nontenured policymaking or advisory position;
   6. In a position designated by the laws of this state as a policymaking or advisory position in which the duties ordinarily do not require more than eight hours per week;
   7. As an election judge appointed by the election authority.

Required Notice to Non-Covered Workers

If an employee of a church, religious order, or 501(c)(3) (not for profit) organization is exempt from unemployment insurance coverage as defined under Employment Security law, Missouri Revised Statutes section 288.041 requires a written notice from the employer to the exempted worker. The notice must state that wages earned by the individual will not be used to determine insured worker status for unemployment benefits. The notice must be provided to each exempt individual at the time of initial employment or upon a change in the employing unit's status regarding liability for unemployment insurance coverage.