MO SB336

Employers must calculate Missouri income tax withholding on employee tips based solely on tips reported by the employee in written statements required under federal IRC Section 6053(a), or the amount of tips received and remitted by the employer, whichever is greater

When employees share tips, employers are required to withhold taxes only from the employee who actually received the shared tips

Employer withholding obligations on tip income are limited to the portion of employee wages under the employer's control that is subject to federal income tax withholding on tips

Withholding on tips must be calculated after first reducing for federal tax withholding, Missouri income tax withholding on non-tip income, and other amounts with higher legal priority