Missouri Classifying Employees for Unemployment Insurance Tax Purposes is the process of determining which employees are covered by the state’s unemployment insurance program. This process involves categorizing employees into two groups: covered and exempt. Covered employees are subject to unemployment taxes, and exempt employees are not. The two major categories of employees are: • Wages Earners: Employees who are paid wages and salaries, and who are generally subject to unemployment taxes. • Independent Contractors: Individuals who are not employees and who are in business for themselves. They are generally not subject to unemployment taxes. In addition, there are other categories of employees such as temporary workers, part-time employees, agricultural workers, and foreign workers, all of which may be subject to different unemployment tax rules. Missouri also has specific rules that apply to employees who work for certain types of businesses, such as religious organizations and certain government entities.