Frequently Asked Questions

Are people and businesses located at the Airport subject to the Earnings and Payroll Expense Tax?

Employees who work at the airport, and are not City residents are not subject to the Earnings Tax. City Residents are subject to the tax regardless of where they work.

Businesses that only have a location at the airport are not subject to the Earnings Tax or the Payroll Expense Tax. The City of St. Louis may own the Airport, but since it is not within the geographic boundaries of the City the businesses located there are not subject to the Earnings tax.

The Payroll Expense tax is only paid by businesses that have employees working in the City of St. Louis.

When did the Earnings Tax become Law?

The Earnings Tax became law in 1954.

When did the Payroll Expense Tax become Law?

The Payroll Expense Tax became law in 1988.

Is a company liable for earnings tax if they have a city facility that is being used as a warehouse, but has no employees?

A company that has a warehouse in the city, but has no employees is still subject to the earnings tax on the business.  They are required to file the E-234.  The reason for this is the business has physical assets in the city.  On the E-234 there is a three factor allocation formula that is used to determine if a non resident business is subject to the earnings tax.  The three factors are, Sales, The value of real and personal property including inventory, and payroll.  If a business has any one of these factors, they are then required to file the E-234, and possibly the W-10 and P-10.

Is rental income taxable for the earnings tax?

Rental real estate is not subject to the city earnings tax if it is owned by an individual. Rental real estate that is owned by a partnership or corporation may be subject to the earnings tax depending on the type of lease there is between the landlord and the tenant. If the lease requires the landlord to be responsible for the upkeep of the property and pays all the expenses then the rental income is taxable. If the lease requires the tenant to pay all the expenses of upkeep, then the rental income is not taxable.

What is the Earnings Tax for?

The earnings tax is used to pay for the general city services, like the police and fire departments, street repair, park maintenance and pay salaries for the city employees.

How far back can I file for a refund?

The Statute of Limitations for a refund request is one year from the original date when the return and taxes were due.

What is included in Payroll Expense Tax?

Taxable

  • Auto & Travel Allowance
  • Auto-Personal Use of Company Car
  • Bonuses
  • Cafeteria Plans (IRC Sec. 125-129 Plans)
  • Prepaid Medical Premiums
  • Purchase of additional medical or dental insurance
  • Education Benefit
  • Health Savings Account
  • Employer Paid Adoption Expense
  • Commissions
  • Deferred Compensation (IRC Sec. 401, 403, 414, 457, 501 etc.)
  • Fees
  • Foreign Workers with Federal Tax Treaty
  • Group Term Life in Excess of $50,000.00
  • Profit Sharing reported on W-2
  • Retirement Incentives
  • Salaries
  • Salary Paid during Sickness & Disability
  • Severance Pay
  • Stock Options
  • Stock Appreciation Rights (SAR)
  • Stock Options Granted
  • Non-Statutory (box 12V)
  • Statutory
  • Interest and Gains
  • ISO
  • Tax Gross Up
  • Vacation & Sick Time Paid in a Lump Sum
  • Wages

Non-Taxable

  • Auto & Travel Reimbursements
  • Moving Expense Reimbursement
  • Disability Insurance Benefits
  • Supplemental Unemployment Benefits (SUB Pay)
  • Third Party Sick Pay from Insurance Companies
  • Tips
  • Tuition Reimbursements
  • Workmen’s Compensation

What is included in individual taxable income?

Taxable

  • Auto & Travel Allowance
  • Auto-Personal Use of Company Car
  • Bonuses
  • Commissions
  • Fees
  • Fellowship & Stipend to Teach, Study or Research Work
  • Foreign Workers under Federal Tax Treaty
  • Group Term Life in Excess of $50,000.00
  • Military-Active Duty & Reserve
  • Profit Sharing on W-2
  • Retirement Incentives
  • Salaries
  • Salary Paid during Sickness & Disability
  • Severance Pay
  • Tax Gross Up
  • Tips
  • Vacation & sick Time
  • Wages

Non-Taxable

  • Alimony or Child Support Received
  • Auto & Travel Reimbursements
  • Cafeteria Plans (IRC Sec. 125-129 Plans)
  • Prepaid Medical Premiums
  • Purchase of Additional Medical or Dental
  • Education Benefit
  • Health Savings Account
  • Employer Paid Adoption Expense
  • Combat Pay
  • Death Benefits
  • Deferred Compensation (IRC Sec. 401, 403, 414, 457, 501, etc)
  • Dividends and Interest
  • Gambling & Lottery Winnings
  • Gifts & Bequest
  • Grants for Maintenance
  • Housing Allowance for Ministers
  • Moving Expense Reimbursement
  • Non-Compete Agreement
  • Pension & Social Security
  • Proceeds from Insurance Policies
  • Qualified Profit Sharing Distributions
  • Scholarships
  • Disability Insurance Benefits
  • Stock Options (12/19/00 & thereafter)
  • Stock Appreciation Rights (SAR)
  • Stock Options Granted
  • Non-Statutory (box 12V)
  • Statutory
  • Interest and Gains
  • ISO
  • Supplemental Unemployment Benefits SUB pay
  • Third Party Sick Pay from Insurance Companies
  • Tuition Reimbursements
  • Unemployment Compensation
  • Workmen’s Compensation

What is included in income reported on W-2 for E-1 and W-10?

Taxable

  • Auto and Travel Allowance
  • Auto-Personal use of Company Car
  • Bonuses
  • Commissions
  • Fees
  • Fellowship and Stipend to Teach, Study or Research
  • Foreign Workers Under Federal tax Treaty
  • Group Term Life In Excess of $50,000
  • Military-Active Duty and Reserve
  • Profit Sharing on W-2
  • Retirement Incentives
  • Salaries
  • Salary Paid During Sickness and Disability
  • Severance Pay
  • Tax Gross Up
  • Tips
  • Vacation and Sick time Paid in Lump Sum
  • Wages

Non-Taxable

  • Auto and travel Reimbursements
  • Cafeteria Plans (IRC Sec. 125-129 Plans)
  • Prepaid Medical Premiums
  • Purchase of Additional Medical or Dental
  • Purchase of Additional Medical or Dental
  • Education Benefit
  • Health Saving Account
  • Employer Paid Adoption Expense
  • Combat Pay
  • Death Benefits
  • Deferred Compensation (IRC Sec. 401, 403, 414, 457, 501, etc)
  • Disability insurance Benefits
  • Housing Allowance for Ministers
  • Moving Expense Reimbursement
  • Non-Compete Agreement
  • Stock Options (12/19/00 & thereafter)
  • Stock Appreciation Rights (SAR)
  • Stock Options Granted
  • Non-Statutory (box 12V)
  • Statutory
  • Interest and Gains
  • ISO
  • Supplemental Unemployment Benefits SUB pay
  • Third Party Sick Pay from Insurance Companies
  • Tuition Reimbursements
  • Unemployment Compensation
  • Workmen’s Compensation