Hiring Employees in Mississippi

Classifying Your Workers Correctly

Your company must decide whether each Mississippi hire is an employee or an independent contractor using IRS common law tests focused on behavioral control, financial control, and the overall relationship. Mississippi generally follows federal guidance, so you should rely on IRS Form SS-8 factors and written contracts that reflect the actual working arrangement.

If you misclassify workers, you may owe back wages, unpaid overtime, federal and state payroll taxes, interest, and penalties, and you could face liability under federal wage and hour laws. To reduce risk, document job duties, supervision level, tools provided, and payment structure, and review Playroll’s employee misclassification guide at https://www.playroll.com/blog/employee-misclassification-guide before engaging contractors in Mississippi.

Verify Employee Work Eligibility

For every employee you hire in Mississippi, you must complete federal Form I-9 within 3 business days of the start date to verify identity and work authorization. You must review original acceptable documents from List A or a combination of Lists B and C, and you cannot specify which documents the employee must present.

Mississippi law requires all employers to use E-Verify to confirm new hires’ work eligibility, so you need to enroll in the federal E-Verify system and run each new hire after completing the I-9. You must retain I-9s for at least 3 years after the hire date or 1 year after termination, whichever is later, and keep them available for inspection separate from general personnel files.

Create an Employee Onboarding Process

When onboarding employees in Mississippi, you should issue a written offer letter outlining job duties, pay rate, pay schedule, and at-will status, then collect federal Form W-4 and Mississippi Form 89-350 for state income tax withholding. You will also want employees to complete direct deposit authorization if used, sign your handbook acknowledgment, and receive any required notices such as workers’ compensation information and unemployment insurance contacts.

Your company should standardize onboarding checklists so every Mississippi hire receives consistent documentation, training, and policy briefings. Clear onboarding and upfront visibility into total hiring costs – including taxes, benefits, and insurance – will help you budget accurately and avoid compliance surprises.

Pay Frequency & Methods

Mississippi does not mandate a specific pay frequency, but your company must establish regular, predictable paydays and follow the schedule you communicate to employees. State law does not set a special deadline for final paychecks, yet best practice is to pay all wages due by the next regular payday to minimize disputes and potential wage claims.

Payment Methods (How You Can Pay)

In Mississippi, you can choose among several payment methods as long as employees receive full wages on the promised payday and a clear wage statement showing hours, rates, and deductions.

• Payroll Check: You can pay employees by check – it must be payable at full face value with no fees to access funds.
• Cash: You may pay wages in cash – you should provide a written pay stub each period so employees can verify hours and deductions.
• Direct Deposit (EFT): You can use direct deposit – it should be voluntary, with written employee consent and at least one fee-free way to access full wages.
• Paycards: You may offer paycards – employees must be able to withdraw full wages at least once per pay period without fees and receive clear disclosures of card terms.
• Outsourced Payroll: You can outsource payroll to a provider – however, your company remains responsible for accurate wage payments, filings, and recordkeeping.

When choosing payment methods in Mississippi, consider employee access to banking, potential fees, and your recordkeeping needs so you can prove timely, accurate payment if a dispute arises.

When you hire employees in Mississippi, you must withhold and remit federal and state payroll taxes and pay employer contributions on top of gross wages. You will need separate registrations for Mississippi income tax withholding and state unemployment insurance before you run your first payroll.

Employer Tax Contributions

Your company is responsible for several employer-side taxes for Mississippi employees, including federal Social Security and Medicare, federal unemployment (FUTA), and Mississippi unemployment insurance (SUI). You must register with the Mississippi Department of Revenue for withholding and the Mississippi Department of Employment Security for unemployment, then file returns and pay contributions on the required schedules.

Employee Payroll Tax Contributions

You must withhold federal income tax, Social Security, Medicare, and Mississippi state income tax from employee wages based on their W-4 and state Form 89-350. Your company must deposit these withholdings on the correct federal and state schedules and provide employees with Form W-2 after year-end.

Minimum Wage in Mississippi

Mississippi has no separate state minimum wage, so you must pay at least the federal minimum wage of $7.25 per hour to nonexempt employees. Tipped employees may be paid a lower cash wage under federal rules only if tips bring them up to at least $7.25 per hour for every workweek.

Working Hours in Mississippi

Mississippi does not set daily hour limits for most private-sector adults, so federal Fair Labor Standards Act (FLSA) rules govern scheduling and recordkeeping. Your company should track all hours worked each day and week, including approved overtime, and provide reasonable meal and rest breaks consistent with safety and operational needs.

Overtime in Mississippi

Because Mississippi has no separate overtime statute, you must follow federal FLSA rules and pay at least 1.5 times the regular rate for all hours worked over 40 in a workweek by nonexempt employees. You should clearly define your fixed 7-day workweek in writing and ensure bonuses, commissions, and different hourly rates are correctly included when calculating the regular rate.

Mississippi does not mandate many employer-provided benefits beyond federal requirements, so your company’s health insurance, retirement plans, and paid leave policies are key tools for attracting talent. If you average 50 or more full-time employees across the U.S., the Affordable Care Act requires you to offer affordable, minimum-value health coverage or face potential federal penalties.

Mandatory Leave Policies in Mississippi

Paid Time Off in Mississippi

Mississippi law does not require you to offer paid vacation or general PTO, but once you adopt a policy, you must follow it consistently. Clearly state in writing how PTO accrues, whether unused time carries over, and whether unused balances are paid out at termination to avoid disputes.

Many Mississippi employers use a combined PTO bank to cover vacation, personal days, and some sick time, which can simplify administration. Whatever structure you choose, communicate accrual rates and approval processes during onboarding so employees understand how to request and use time off.

Maternity & Paternity Leave in Mississippi

Mississippi does not have a separate state parental leave law for private employers, so federal FMLA provides up to 12 weeks of unpaid, job-protected leave for eligible employees of covered employers for birth, adoption, or foster placement. You must maintain group health coverage during FMLA leave on the same terms as if the employee were working.

Even if your company is too small for FMLA, you still must comply with federal pregnancy discrimination laws, which require you to treat pregnancy and childbirth-related limitations the same as other temporary disabilities. Many employers in Mississippi choose to supplement unpaid leave with short-term disability benefits or employer-paid parental leave to stay competitive.

Sick Leave in Mississippi

There is no Mississippi statute requiring private employers to provide paid or unpaid sick leave, so your policy can be flexible as long as it is applied consistently and does not discriminate. If you offer sick leave or PTO, spell out eligible uses, documentation requirements, and any waiting periods in your handbook.

For larger employers covered by FMLA, qualifying serious health conditions may entitle employees to job-protected unpaid leave even if your internal sick leave benefits are exhausted. You should also consider how your sick leave policy supports public health goals, such as encouraging employees with contagious illnesses to stay home.

Military Leave in Mississippi

Employees in Mississippi who serve in the U.S. armed forces, reserves, or National Guard are protected by federal USERRA and state law, which generally require you to grant unpaid leave for service and training. On return, eligible employees must be reinstated to the same or a comparable position with the same seniority, status, and benefits they would have attained.

Your company should request military orders for recordkeeping, continue certain benefits as required, and avoid any adverse actions based on an employee’s military obligations. Make sure supervisors understand that discrimination or retaliation related to military service is prohibited.

Jury Duty in Mississippi

Mississippi law prohibits you from firing or disciplining an employee because they are called for or serve on a jury. You are not required to pay employees for time spent on jury duty, but you must allow them to be absent and may request proof of service.

To minimize disruption, you can ask employees to report to work during portions of the day when they are not required at court, if reasonable. Your policy should explain whether any portion of jury duty time is paid and how employees should submit court documentation.

Voting Leave in Mississippi

Mississippi does not require private employers to provide paid or unpaid time off to vote, but you should avoid scheduling practices that effectively prevent employees from voting during available polling hours. Many employers voluntarily allow flexible scheduling or brief unpaid time off so employees can vote before or after work.

Including a short voting leave or flexible-hours provision in your handbook can support civic participation and reduce last-minute scheduling conflicts on election days. Be sure any such policy is applied consistently to avoid claims of favoritism or discrimination.

Bereavement Leave in Mississippi

There is no Mississippi law mandating bereavement leave for private-sector employees, so whether time off is paid or unpaid is up to your company. A clear written policy that defines eligible family members, the number of days allowed, and documentation requirements will help managers respond consistently during difficult times.

Many Mississippi employers offer 1–3 days of bereavement leave for immediate family members as a standard benefit. Providing compassionate, predictable support during bereavement can strengthen employee loyalty and morale.

Termination Process

Mississippi is an at-will employment state, meaning you or the employee may end the relationship at any time for any lawful reason, or no reason, as long as it is not discriminatory or retaliatory. Your company should document performance issues, policy violations, and prior warnings, and conduct a structured termination meeting that covers final pay, benefits status, and return of company property.

Notice Period

Mississippi law does not require employers or employees to give advance notice before termination, unless a contract or collective bargaining agreement provides otherwise. Even though notice is not mandated, giving reasonable notice when possible and documenting the effective date of separation can reduce confusion and potential disputes.

Severance

Severance pay is not required under Mississippi law, but you may choose to offer it in layoffs, restructurings, or negotiated separations. If you provide severance, use a written agreement that explains the payment terms and any conditions, such as a release of claims, and apply your severance practices consistently to avoid discrimination concerns.