Changes the definition of salaries, wages, commissions, and other compensation for local earnings tax purposes

HB 1170 modifies Missouri's local earnings tax rules by excluding certain deferred compensation contributions from taxable income. Specifically, it removes from the definition of "compensation" any contributions to tax-deferred plans (like salary reduction or cafeteria plans) if those contributions or payments aren't subject to Missouri income tax when made or paid. This change directly affects residents and nonresidents who participate in such deferred compensation plans. The bill aims to align local earnings tax calculations with state income tax treatment for these payments.