State ExplorerMississippi

Easily manage employment in Mississippi

Make employment in Mississippi easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Mississippi, all in one easy-to-use platform.

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Mississippi at a glance

As the birthplace of blues legends such as BB King and Robert Johnson, and literary icons such as Tennessee Williams and William Faulkner, Mississippi is an important part of US culture and history.

With a renowned higher education system, a strong presence in the agriculture, aquaculture, and tourism sectors, and a business-friendly state government, The Hospitality State is popular with employers. And with a low cost of living and a relaxed lifestyle, it’s becoming increasingly popular among job seekers, too.

Capital

Jackson

Currency

United States Dollar

Population

3000000

Sales tax rate

7

Employing in Mississippi

In Mississippi, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.

Here are the key things you need to know about hiring in Mississippi.

Work and overtime laws in Mississippi are mainly governed by the state’s Department of Employment Security.

What is considered full-time employment in Mississippi?

Full-time employment is generally considered to be between 35 and 40 hours per week, although this is dependent on the industry.

Do salary employees get overtime in Mississippi?

Under the federal Fair Labor Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.

Employees are generally (but not always) exempt from overtime if they:

  • Earn more than the specified state or federal exemption threshold

  • Perform a role with duties that are

  • Work in a certified or licensed profession, such as law, accounting, architecture, or engineering

In Mississippi, the salary threshold for exemption is currently $684 per week, which is the federal minimum.

Note that the federal salary threshold for exemption is currently being reviewed in the US.

Competitive benefits package in Mississippi

Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the Mississippi labor market, allowing your employees to feel appreciated and thrive.

Our benefits packages in Mississippi usually include some or all of the following:

Pension / 401k retirement plan

Medical Insurance

Vision insurance

Health Saving Plan (HSA)

Long term disability insurance (LTD)

Dental insurance

Life insurance

Flexible Spending Account (FSA)

Are employers required to provide health insurance in Mississippi?

Under the federal Affordable Care Act, organizations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.

Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.

Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.

Note that we do not add a markup on any benefits premiums or administration costs.

Are employers required to offer 401k in Mississippi?

No. Organizations are not legally required to offer a 401k retirement plan (or any other type of savings plan) to their employees. However, they may choose to offer this benefit as part of their overall compensation package.

Mississippi, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Mississippi may lead to fines and penalties for the offending company.

Taxes in Mississippi

Employment taxes and statutory fees affect both your payroll and your employees' paychecks in Mississippi. Note that your employees may be liable for additional local taxes.

Employer taxes

0%

Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year)

0% to 5.4%

State unemployment insurance tax (SUTA)

0.0%

FICA (Social security)

0.00%

FICA (Medicare)

Employee taxes

0% to 37%

Federal income tax

0.0%

State income tax

0.0%

FICA (Social security)

0.00%

FICA (Medicare)

Types of Leaves in Mississippi

Vacation

In Mississippi, there is no state or federal law that requires employers to provide paid or unpaid vacation leave to their employees, although most organizations do.

Sick leave

In Mississippi, there is no state or federal law that requires employers to provide paid sick leave to their employees, although some organizations do. Can an employer deny sick time in Mississippi? Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid sick leave per year, provided they: Have worked for the same employer for at least 12 months Work in a location where at least 50 people are employed by the company within a 75-mile radius

Parental and maternity leave

Under the FMLA, employees are entitled to up to 12 weeks of unpaid maternity or paternity leave. Some organizations opt to pay a reduced salary during this period.

Bereavement leave

Employers are not legally required to provide bereavement leave to their employees, although most organizations offer unpaid leave.

Jury duty

Employees must report for jury duty if summoned (unless exempt). Jurors are typically “on call” for two weeks. Do employers have to pay for jury duty in Mississippi? No. Private sector employers are not required to pay employees on jury service, but they must provide unpaid leave, and cannot penalize or terminate an employee on jury duty. Some employers provide paid leave.

Military leave

Under state and federal law, employers must grant unpaid leave to employees who are members of the military or the National Guard for military duty or training. These employees have the right to take time off for their military obligations, and employers are prohibited from discriminating against them based on their military service.

Employment Termination in Mississippi

Termination process

Like nearly all US states, Mississippi is an “at-will” state. This means both employers and employees can end the employment relationship without reason, provided it is legal.

Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly, negating any potential legal complications.

Notice period

Employers and employees are not required to provide notice of termination, unless otherwise stated in the employment contract.

Despite this, it's usually customary for employees to provide two weeks' notice when leaving an organization.

Severance pay

Employers are not legally required to provide severance pay (unless it is stipulated in the employee's contract or in the company policy).

Employers are also not required to pay any accrued but unused vacation time, unless stipulated in the employment agreement.

Probation periods

There is no requirement to provide a probation period for employees, although many companies implement internal probation policies. These policies typically involve a formal performance evaluation after a specified period, such as three or six months.

Payroll management in Mississippi

Mississippi has a diverse economy supported by industries such as agriculture, manufacturing, healthcare, and energy. With no state-specific minimum wage laws and a lower tax burden, employers in Mississippi must ensure compliance with federal payroll laws and state tax regulations. Understanding these regulations is crucial for smooth payroll operations and compliance.

Payroll breakdown in Mississippi

Employers in Mississippi must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:

Minimum wage and overtime

  • Minimum wage: Mississippi does not have a state minimum wage, so employers must follow the federal minimum wage of $7.25 per hour.

  • Overtime rules:

State income tax

  • Mississippi has a progressive state income tax system, with rates as follows:

  • Employers must withhold state income tax and remit it to the Mississippi Department of Revenue.

Unemployment insurance (UI) tax

  • Employers must contribute to Mississippi’s Unemployment Insurance (UI) program, managed by the Mississippi Department of Employment Security (MDES).

  • The UI wage base in Mississippi is $14,000.

  • UI tax rates vary based on an employer’s experience rating and range from 0% to 5.4%.

  • New employers typically pay a 2.7% UI tax rate.

Workers’ compensation

  • Mississippi law requires most employers with five or more employees to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.

  • Some exemptions apply, including certain agricultural workers, domestic employees, and independent contractors.

Payroll tax filing and payment deadlines

  • Employers must register for a Mississippi Withholding Tax Account Number with the Mississippi Department of Revenue.

  • State withholding tax returns must be filed monthly, quarterly, or annually, depending on employer classification.

  • UI tax reports must be submitted quarterly to the Mississippi Department of Employment Security (MDES).

  • Payroll tax payments can be made electronically through the Mississippi Taxpayer Access Point (TAP) portal.

Quick facts: Important considerations for employers

  • State minimum wage compliance: Mississippi follows the federal minimum wage of $7.25 per hour.

  • Final paycheck rules:

  • New hire reporting: Employers must report new hires to the Mississippi State Directory of New Hires within 15 days.

  • Paid sick leave: Mississippi does not require employers to provide paid sick leave, but employers may choose to offer it as a benefit.

  • Payroll recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.

  • Right-to-work state: Mississippi is a right-to-work state, meaning employees cannot be required to join a union as a condition of employment.

Run payroll in Mississippi with Remote

Managing payroll in Mississippi requires careful attention to federal and state-specific regulations, including UI tax requirements, workers’ compensation laws, and income tax withholding. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be, book a demo with Remote today.

Contractor management in Mississippi

Hiring contractors in Mississippi can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or bringing in subcontractors for labor-intensive projects, understanding Mississippi's laws and federal regulations is essential.

Staying compliant with Remote’s contractor management

Remote helps businesses stay compliant when hiring contractors globally with these key features:

  • Global compliance support : Ensures adherence to labor laws in 200+ countries with localized contracts and proper documentation.

  • Misclassification protection : Includes built-in compliance checks and seamless contractor-to-employee conversion.

  • Centralized documentation : Maintains essential records for audits and automates tax filings, such as 1099s for U.S. contractors.

  • Legal expertise : Provides guidance on complex local labor laws, simplifying international hiring.

Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.

Seamless contractor payments with Remote

Remote simplifies contractor payments with:

  • Automated processing : One-click approvals, bulk payments, recurring invoices, and real-time tracking.

  • Global coverage : Payments in 200+ countries, multiple payment methods, and currency flexibility.

  • Cost and compliance : Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.

Learn more about how Remote simplifies contractor management in Mississippi —get started for free today.

Employer of record in Mississippi

Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Mississippi with speed and simplicity.

What is an EOR — and how does it work?

Remote’s EOR allows your company to legally hire employees in any country or US state — including Mississippi — wherever your business is based, without having to set up a local legal entity.

On paper, Remote is the official employer, and we handle compliance, payroll, benefits (including equity), and other HR processes — but you maintain full control over the hire’s day-to-day management and work responsibilities. Learn more.

Who should consider using an EOR in Mississippi?

An EOR may be ideal if your company:

  • Needs to hire employees in Mississippi but doesn’t want to establish a legal entity there

  • Is testing local markets before committing to a full business expansion

  • Wants to ensure full compliance with federal, state, and local employment laws and tax requirements

  • Needs a fast, cost-effective way to onboard employees in the state

  • Needs a temporary hiring solution before establishing a legal entity

Why use Remote’s EOR in Mississippi?

If your company wants to hire talent in Mississippi but doesn't have a legal entity there, our EOR provides a fully compliant and efficient solution. Whether you’re hiring from outside the US, or from a different US state, there are strict employment and payroll processes that you must adhere to. Our EOR service ensures you meet these legal obligations while enabling you to grow quickly.

Key benefits of hiring through our EOR in Mississippi include:

  • Faster market entry . You can hire talent quickly, without having to wait months to establish a local entity.

  • Full compliance with local employment laws . Avoid the legal risks associated with non-compliance and misclassification.

  • Simplified payroll management . We automate payroll tax calculations and ensure you are fully compliant with all federal, state, and local withholding obligations, even when laws change.

  • Lower costs. Setting up a legal entity in Mississippi can be costly and time-consuming. An EOR eliminates the need for entity registration, reducing overhead expenses.

  • Fewer resources required. With HR, payroll, and compliance managed by the EOR, your company can concentrate on scaling operations and assigning your resources elsewhere.

It’s also crucial to note that, at Remote, we own all our own legal entities. As a result, we don’t need to rely on third parties, which can incur delays and extra costs, and result in a negative employee experience. All our EOR services — including the dedicated support of our local specialists — are provided in-house.

To learn more — and to see our EOR platform in action — book a demo with one of our friendly experts today.

Scale your team with a PEO in Mississippi

Mississippi attracts growing businesses with its low cost of living, affordable workforce, and strong presence in manufacturing, agriculture, and distribution. Whether you’re a startup expanding across the south or an SMB ready to build a distributed team, managing HR, payroll, and compliance across state lines can quickly become overwhelming. That’s where a professional employer organization (PEO) can help.

What is a professional employer organization (PEO)?

A professional employer organization (PEO) is a third-party provider that helps businesses handle key HR functions. These typically include payroll, benefits administration, tax filings, and employment law compliance. With a PEO, your business enters into a co-employment relationship, meaning the PEO takes on the administrative and legal tasks related to employment — while you retain full control over day-to-day management of your team.

For small to midsize companies, a PEO can provide enterprise-grade HR services without the cost or complexity of building an in-house department.

PEO vs EOR: What’s the difference?

As mentioned, a PEO operates through a co-employment model, which requires your company to be registered and operating in Mississippi.

In contrast, an employer of record (EOR) acts as the legal employer on your behalf. EORs are typically used for hiring in states (or countries) where your business doesn’t yet have a legal presence. If you’re hiring your first employee in Mississippi and don’t yet have an entity or tax setup, an EOR may be a better fit initially.

Why use a PEO in Mississippi?

Working with a PEO in Mississippi offers several advantages, such as:

  • Compliance with state employment laws and tax regulations

  • Access to affordable, competitive employee benefits packages

  • Reduced administrative burden around payroll and HR documentation

  • Simplified onboarding, performance tracking, and employee offboarding

  • Minimized risk around misclassification, workplace policies, and employee relations

Mississippi employers must also navigate unique state laws, including workers’ compensation requirements and specific tax obligations. Remote’s PEO helps you stay compliant while keeping your HR operations lean and efficient.

How to use a PEO in Mississippi

To partner with a PEO in Mississippi, your business must have a registered legal entity in the state. Once that’s in place, our PEO service takes on your HR administration tasks such as running payroll, administering benefits, and filing local and federal taxes.

Remote’s PEO services integrate seamlessly into your operations, whether you're hiring your fifth employee or your 50th. You maintain full control over how your team works while we handle the operational complexities behind the scenes.

Is a PEO right for your business?

If your company is legally established in Mississippi and you're looking for a scalable way to manage HR, a PEO is an ideal solution. You’ll gain access to expert support, reduce your compliance risk, and free up time to focus on growth.

If you're just entering Mississippi and don’t yet have a legal entity, consider starting with an EOR and transitioning to a PEO as you scale.

Streamline HR and payroll in Mississippi with Remote

Remote makes it easy to manage HR, payroll, and compliance across all 50 states. Learn more about our PEO services and how we can support your team’s growth in Mississippi.

Fair Pricing in Mississippi

Payroll

$29

per employee/month

  • Robust, transparent international payroll

  • Intuitive self-service platform

  • Tailored support from dedicated specialists

  • Comply with local payroll regulations in every country

  • Unified benefits management

  • HR Core included as standard

Contractor Management

$29

per contractor/month

  • For your reference, pay only for contractors you actively work with

  • Collaborate with international contractors

  • Draft, modify, and sign tailored, localized contracts

  • Approve contractor invoices with a single click or set them to auto-pay

  • Enjoy transparent payments with complete visibility

  • Comes with HR Core included as standard

Employer of Record

$699

per employee/month

  • Hire talent in 90+ countries without establishing a local entity

  • Onboard new hires with a dedicated specialist

  • Local payroll handled and disbursed on time, every time

  • Compliance protections integrated by default

  • Competitive, flexible, and locally tailored benefits

  • Dedicated in-house experts providing local support

  • HR Essentials included as standard