On January 9, 2025, Missouri lawmakers introduced House Bill 652, a legislative proposal aimed at streamlining the electronic filing process for employers. The bill mandates that employers submit employee tax returns electronically by January 31 each year, aligning with the existing requirements set by the Social Security Administration.

The primary goal of HB 652 is to enhance efficiency in tax reporting and compliance, reducing the administrative burden on both employers and the state. By standardizing the electronic filing process, the bill seeks to minimize errors and improve the accuracy of employee tax data submitted to the state.

One notable aspect of the bill is its provision for employers who may be granted a waiver by the Internal Revenue Service (IRS) to file electronically. If an employer receives such a waiver, they can submit a copy to the director of the state’s tax department, which will exempt them from the electronic filing requirement under this bill as well.

While the bill has garnered support for its potential to simplify tax processes, it has also sparked discussions among various stakeholders. Some business groups express concerns about the feasibility of meeting the electronic filing deadline, particularly for smaller employers who may lack the necessary resources or technology.

The implications of HB 652 extend beyond administrative efficiency; it could also impact the state’s revenue collection and compliance rates. By encouraging electronic filing, the state may see improved accuracy in tax reporting, which could lead to better financial planning and resource allocation.

As the legislative session progresses, lawmakers will likely continue to debate the bill's provisions and consider amendments to address the concerns raised by opponents. The outcome of this bill could set a precedent for future tax reporting requirements in Missouri, making it a significant topic for both employers and employees alike.