Missouri modifies provisions relating to withholding on tips

Provisions relating to Missouri income tax withholding on employees’ tips have been amended to specify that, for employees that earn tips, the amount of income that the employer should withhold for tax purposes should be based on the greater of the total tips reported to the employer on the employee’s written statement or the amount of tips remitted to the employee by the employer. If an employee shares tips, the employer must withhold only from the employee who actually received the tips. The employer’s withholding obligation is limited to the portion of the employee’s wages that is under the employer’s control. (S.B. 336, Laws 2015, effective August 28, 2015.)

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