FICA Tip Credits

Help for restaurants and hospitality businesses to claim valuable tax credits on employee tips.

Most programs have no out-of-pocket costs

What Are FICA Tip Credits?

The FICA Tip Credit allows food service employers to claim a tax credit for the employer's portion of Social Security and Medicare taxes paid on employee tip income. Many restaurants and hospitality businesses fail to claim these credits they're entitled to—often leaving thousands of dollars on the table.

Who Qualifies?

Businesses in the food and hospitality industry that employ tipped workers may qualify for FICA Tip Credits, including:

  • Restaurants and cafes
  • Hotels and resorts
  • Bars and nightclubs
  • Catering companies
  • Country clubs and golf courses
Waiter holding bill folder with cash at restaurant

Key Benefits

Significant Savings

Recover 7.65% of tipped employee wages in FICA tax credits—money that directly impacts your bottom line.

Retroactive Claims

We can help identify missed credits from prior years (typically up to 3 years) that you can still claim.

Compliance Made Easy

Our team handles the complex calculations and documentation required to properly claim these credits.

Basic Requirements

1

Employ Tipped Workers

Must have employees who receive tips (servers, bartenders, etc.)

2

Form 8027

Employer must file IRS Form 8027 for large food establishments

3

Tip Allocation

Properly track and allocate tips between tipped and non-tipped employees

4

Required Documentation

Maintain accurate records of tip income and employer FICA payments

Leave Money on the Table?

Many restaurants and hospitality businesses don't realize they're missing out on thousands in FICA Tip Credits. Let us help you identify what you're entitled to.

Free consultation • No obligation • No upfront costs for most programs