Form 89‑350‑20‑8‑1‑000: Withholding Exemption Certificate

Form 89-350 Withholding Exemption Certificate: Key Takeaways

• Form 89-350 is the Mississippi Employee's Withholding Exemption Certificate for state income tax withholding.
• Employees must complete this form when starting a job or updating exemption status to specify the number of personal exemptions.
• Employers must have a current Form 89-350 on file; without it, withholding defaults to zero exemptions.

Form 89-350 plays a vital role in Mississippi's state income tax withholding system, ensuring accurate tax deductions based on employee exemptions.

This article explains how the form works, employer responsibilities, and compliance tips for Mississippi withholding.

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1. Purpose of Form 89-350 in Mississippi

Form 89-350, titled "Employee's Withholding Exemption Certificate," is specifically designed for Mississippi state income tax withholding.

Employees complete this form to declare the number of personal exemptions they claim, which directly affects the amount of state tax withheld from their wages.

This state form supplements the federal Form W-4 because the federal form does not provide detailed information needed for Mississippi withholding.

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2. Employee Responsibilities for Completing Form 89-350

Employees must complete Form 89-350 when they begin employment with a Mississippi employer or when they want to update their exemption status.

Providing accurate exemption information helps ensure proper withholding and avoids underpayment or excessive withholding of state taxes.

If an employee does not submit Form 89-350, employers are required by law to withhold Mississippi income tax assuming zero exemptions, which could increase their withholding amount.

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3. Employer Duties Regarding Form 89-350

Mississippi employers must collect Form 89-350 from every employee to comply with state withholding laws.

Employers are responsible for maintaining the most current version of the form, as the Mississippi Department of Revenue updates it periodically to reflect tax law changes.

Employers must verify that the forms used are the latest versions, which have been released annually in recent years (2015 through 2019 and beyond).

Without a valid Form 89-350, employers must withhold taxes assuming zero exemptions to avoid noncompliance.

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4. Withholding Calculations Based on Form 89-350

Unlike some states, Mississippi does not have a supplemental withholding rate.

All state withholding calculations rely on the exemptions claimed in Form 89-350 along with the state's withholding tax tables provided by the Mississippi Department of Revenue.

Accurate completion and timely submission of the form allow for correct tax withholding according to state guidelines.

Updating Form 89-350

Employees should submit a new Form 89-350 whenever their exemption status changes, such as changes in dependents or marital status.

Employers should promptly update payroll systems to reflect any new forms submitted by employees.

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5. Compliance Best Practices for Form 89-350

To maintain compliance with Mississippi tax withholding laws, employers should:

• Provide new hires with Form 89-350 for completion on their first day of employment.
• Verify that employees complete the current version of the form.
• Keep accurate records of each employee’s submitted form.
• Coordinate with payroll or accounting departments to ensure withholdings are calculated based on submitted exemptions.
• Regularly check Mississippi Department of Revenue updates for new form versions or withholding instructions.

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6. Common Issues and How to Avoid Them with Form 89-350

Failure to collect or update Form 89-350 can create problems such as:

• Excessive withholding: Default to zero exemptions means higher taxes withheld than necessary, reducing employee take-home pay.
• Noncompliance penalties: Employers not withholding correctly may face penalties from the Mississippi Department of Revenue.
• Employee dissatisfaction: Incorrect withholding often leads to employee confusion and frustration during tax filing season.

Ensuring timely collection and processing of Form 89-350 helps prevent these issues.

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7. Accessing and Submitting Form 89-350 in Mississippi

Employers and employees can access the official Form 89-350 through the Mississippi Department of Revenue website.

Electronic submission processes vary by employer, but the form must be completed and retained for tax records and payroll processing.

Employers should follow up with employees to confirm receipt of updated forms as needed.

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8. Additional Resources for Form 89-350 and State Withholding

• Mississippi Department of Revenue
• Mississippi Employee's Withholding Exemption Certificate (Form 89-350)
• Mississippi Withholding Tax Tables and Employer Instructions

Form 89-350 Withholding Exemption Certificate: Conclusion

Form 89-350 is essential for accurate state income tax withholding in Mississippi, allowing employees to claim personal exemptions that affect the tax withheld from wages.

Employers are legally required to collect and process this form for each employee, using the most recent version to ensure compliance with tax laws.

Proper management of Form 89-350 prevents withholding errors, protects against compliance penalties, and promotes smooth payroll operations within Mississippi workplaces.

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