Stop Overpaying Payroll Tax on Tips
Claim the federal FICA Tip Credit (Sec. 45B) on eligible employee tips—without the complexity.
- Annual credit + retro claim opportunities
- POS/payroll data integrations
- Documentation & IRS Form 8846 filing support
Trusted by 1,200+ restaurants
What Is the FICA Tip Credit?
The FICA Tip Credit (Internal Revenue Code §45B) lets eligible employers claim a federal income tax credit equal to the employer-paid FICA taxes (currently 7.65%) on certain employee tip income.
In simple terms: if your staff reports tips and you pay the employer share of FICA on those tips, you may be entitled to a dollar-for-dollar credit against income tax—separate from your payroll tax filings.
Note: Amounts of tip income used to satisfy federal minimum wage requirements are excluded from the credit calculation.
Who Qualifies
If you run a hospitality business with tipped employees, you likely qualify.
Restaurants & Bars
Full-service restaurants, bars, nightclubs, and cafés with tipped staff.
Hotels & Hospitality
Hotels, resorts, and hospitality concepts with food & beverage operations.
Common Roles
Servers, bartenders, bussers, barbacks, counter staff, hotel F&B, and more.
Eligibility Requirements
Pay Employer FICA
You must pay the employer share of FICA on reported tips.
Tip Reporting Process
Maintain proper tip reporting processes and POS/service charge distinctions.
Minimum Wage Compliance
Meet federal minimum wage rules for all employees.
What You Could Save
Typical annual credit ranges from a few thousand dollars for small teams to six figures for multi-unit groups.
Quick Credit Estimator
Estimated Annual Credit
$0
Based on 7.65% of eligible tips. Final amount depends on actual data.
How It Works
Get your FICA Tip Credit in 4 simple steps
Quick Eligibility Check
Take our 2-minute assessment to verify your business qualifies for the FICA Tip Credit.
Data Pull & Confirmation
We securely integrate with your payroll and POS systems to pull tip reports and verify data accuracy.
Credit Calculation & Documentation
Our team prepares Form 8846 with complete documentation to support your claim.
Filing & Support
We coordinate with your CPA or file through our network to ensure maximum credit recovery.
Why Choose Us
Hospitality-focused expertise that delivers results
Hospitality-Savvy Workflows
POS, payroll, and tip reporting alignment built for restaurants.
Transparent Methodology
Compliant documentation you can defend with confidence.
CPA Coordination
Optional integration with your existing finance team.
Speed & Efficiency
Most engagements completed within 5–10 business days.
Our Commitment to You
Industry Expertise
We specialize in hospitality tax credits with deep restaurant industry knowledge.
Maximum Recovery
Our proven process ensures you claim every dollar you're entitled to.
Risk-Free Service
No upfront fees. We only get paid when you receive your credit.
Ongoing Support
Annual reviews to ensure you continue maximizing your credit year after year.
Required Documents
Gather these documents to get started with your FICA Tip Credit claim
Document Checklist
Payroll Reports
Payroll reports showing employer FICA taxes paid by pay period for all tipped employees
POS Reports
Point-of-sale reports with employee-reported tips (excluding service charges and automatic gratuities)
Tip Policy Documentation
Your current minimum wage and tip-credit policy details for compliance verification
Previous Claims
Prior Form 8846 filings and return schedules (if you've previously claimed the credit)
Need help gathering documents? Our team can guide you through the process and help identify what you need from your payroll provider or POS system.
FAQ
Common questions about the FICA Tip Credit
It's a federal income tax credit (Form 8846), often reducing income tax owed. It's separate from payroll tax filing mechanics—you still pay employer FICA on tips, but claim the credit on your income tax return.
Often, yes—subject to statute of limitations. You can typically amend returns for the past 3 years to claim missed FICA Tip Credits.
You still pay employer FICA on tips as normal. The Sec. 45B credit is claimed separately on the income tax return—it doesn't change your payroll tax filings.
Service charges are not "tips" under IRS rules and typically don't qualify for the FICA Tip Credit. Only voluntary tips reported by employees are eligible.
Not necessarily. We verify your existing process for compliance and documentation. Most restaurants already have the required processes in place—no policy changes needed.
