Employer Liability
An employer may become liable for registering with the Mississippi Department of Employment Security (MDES) and paying unemployment taxes in one of three ways:
1) by acquiring an already liable business;
2) by voluntarily electing to become a liable employer, or
3) based on their own employment record.
Requirements for "liability based on their own employment record" are:
Domestic: Upon payment of $1,000 in wages in a calendar quarter.
Agriculture: Upon payment of $20,000.00 in wages in a calendar quarter OR when 10 or more workers (does not have to be the same workers) have performed services in some portion of a day in each of 20 different calendar weeks in a calendar year.
Non-profit Organizations: When a business who possesses a 501C (3) IRS exemption employs 4 or more workers in some portion of a day in each of 20 different calendar weeks in a calendar year.
Governmental: Upon payment of any wages.
All other commercial enterprises: Upon payment of $1,500.00 in wages in a calendar quarter OR at least one worker (does not have to be the same worker) performs services in some portion of a day in each of twenty (20) different calendar weeks in a calendar year.
Registering your business:
Once liability is met, you may register your business to pay unemployment taxes using our online service. To complete the registration form, select here.
If you have further questions regarding liability, please contact our office at 601-321-6334 or 1-866-806-0272.
If you are starting a new business in Mississippi, you may also need to contact the:
Mississippi State Tax Commission
Worker’s Compensation Commission
Internal Revenue Service
Department of Labor - Wage and Hour Division
