Missouri Senate OKs easing employer tip tax withholding duty

JEFFERSON CITY, Mo. (AP) - Restaurants and other businesses say they should be responsible for withholding state income taxes only from wages and the amount of tips workers report to them.

The Missouri Senate approved a measure Thursday that would specify businesses are not responsible for withholding taxes from tips that employees fail to report.

Restaurant owners say the state's Department of Revenue has been trying to collect from employers when the department thinks workers have not reported cash tips as income.

They say they must trust employees to report cash tips because there is no way to track that income.

The measure passed 31-0 and now goes to the House for consideration.

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