Recover Thousands in FICA Tip Tax Credits
Most restaurants miss out on this substantial tax credit. We've helped businesses claim over $1 billion.
The FICA Tip Credit You're Missing Out On
Most restaurant and bar owners don't realize they're eligible for this substantial tax credit. Here's what you need to know:
What is it
A dollar-for-dollar tax credit for employers who pay FICA taxes on employee tips. This is NOT a deduction—it's a direct reduction of your tax bill.
Who Qualifies
Restaurants, bars, hotels, and any hospitality business with tipped employees. If your staff receives tips, you're likely eligible.
How Much
Up to 7.65% of qualified tip income. For a restaurant with 20 tipped employees, this can mean $20,000+ per year in credits.
Is Your Business Eligible?
Many hospitality businesses qualify for the FICA Tip Credit but don't realize it. See if your business type is eligible:
Full-Service Restaurants
Establishments where servers take orders and deliver food to customers at tables, including fine dining, casual dining, and family restaurants.
Examples:
Steakhouses, Italian restaurants, diners, etc.
Bars & Nightclubs
Establishments primarily serving alcoholic beverages where bartenders and servers receive tips from customers.
Examples:
Sports bars, cocktail lounges, pubs, nightclubs
Hotels & Resorts
Hospitality businesses where bellhops, room service staff, concierge, and other employees receive tips.
Examples:
Luxury hotels, boutique hotels, resorts, motels
Catering Companies
Businesses that provide food service at remote sites where staff receives tips from clients or guests.
Examples:
Steakhouses, Italian restaurants, diners, etc.
Coffee Shops & Cafes
Establishments serving beverages and light meals where baristas and counter staff receive tips.
Examples:
Sports bars, cocktail lounges, pubs, nightclubs
Other Qualifying Businesses
Hospitality businesses where bellhops, room service staff, concierge, and other employees receive tips.
Examples:
Luxury hotels, boutique hotels, resorts, motels
Key Eligibility Requirements:
Your business must have employees who receive tips from customers
You must pay FICA taxes (Social Security and Medicare) on those reported tips
Your employees must report their tip income to you as the employer
The business must have filed the appropriate tax forms (Forms 941, 8027, etc.)
How It Works
Our streamlined process makes claiming your FICA tip credit simple and hassle-free
Simple Application
Fill out our quick form with basic information about your business
Our CPAs Process Your Claim
Our tax specialists handle all paperwork and IRS requirements
Receive Approval
We work with the IRS to get your claim approved quickly
Get Funded in Weeks
Receive your credit in weeks, not months
Why Choose Tip Credit Partners
We specialize exclusively in maximizing FICA tip credits for the hospitality industry
Expertise
Our tax specialists have processed over $1 billion in FICA tip credits, ERTC Funds, and Visa/Mastercard Settlements. We handle everything from start to finish
Speed
While others take months, we get you funded within weeks through our streamlined process
Maximized Returns
Our proprietary methods ensure you get every dollar you deserve, often 30% more than DIY approaches
Zero Upfront Costs
You pay only when you receive your credit—no risk, no hidden fees
$1B+
in Claims Processed
1000+
Businesses Helped
100%
Compliance Rate
50
States Covered
Frequently Asked Questions
Everything you need to know about the FICA Tip Credit
What is the FICA Tip Credit?
The FICA Tip Credit (IRS Code Section 45B) is a dollar-for-dollar tax credit that reimburses employers for the FICA taxes (Social Security and Medicare) paid on employee tips above the federal minimum wage. This is not a deduction—it directly reduces your tax liability, providing immediate cash flow benefits to your business.
How much can my business claim?
The credit equals 7.65% of tips reported by your employees that exceed the federal minimum wage. For a restaurant with 20 servers averaging $200 in weekly tips, this can mean over $20,000 per year in tax credits. We can also claim retroactively for up to 3 years, potentially resulting in a substantial refund.
Is my business eligible?
If you own a restaurant, bar, hotel, or any hospitality business where employees receive tips, you're likely eligible. The business must have employees who receive tips that are reported to the IRS, and you must pay FICA taxes on those tips. There is no minimum size requirement—businesses with just a few tipped employees can qualify.
How is the credit calculated?
The credit is calculated as 7.65% (the combined FICA tax rate) of the tip income that exceeds the federal minimum wage. The formula is: (Total reported tips - (Federal minimum wage × Total hours worked)) × 7.65%. Our team handles all these calculations to ensure maximum accuracy and benefit.
Can I claim the credit for past years?
Yes, you can claim the FICA tip credit retroactively by filing amended returns for up to 3 years. This means if you've never claimed this credit before, you could receive a substantial refund for prior tax years. Our team specializes in maximizing these retroactive claims.
Does claiming this credit trigger an audit?
When properly documented, claiming the FICA tip credit does not increase your audit risk. Our process ensures all claims are thoroughly documented and compliant with IRS requirements. We maintain a 100% compliance rate and stand behind every claim we process.
How long does the process take?
While most firms take months, our streamlined process typically gets you funded within weeks. After you provide the necessary information, our team handles everything, and you can expect to receive your credit in 4-8 weeks in most cases. For retroactive claims, the timeline may be slightly longer.
What documentation do I need?
We need your business tax returns (Form 1120, 1120S, or 1065), payroll reports showing tip income (Form 941), Form 8027 (Employer's Annual Information Return of Tip Income), and Form 8846 if you've previously filed for the credit. Don't worry if you don't have everything—our team will guide you through exactly what's needed.
Is there a fee for your service?
We work on a contingency basis—you pay nothing upfront. Our fee is a percentage of the credit we secure for you, so we only get paid when you get your money. If we don't get you a credit, you pay nothing. This risk-free approach aligns our success with yours.
How does this credit affect other tax incentives?
The FICA tip credit can be claimed alongside other tax incentives like the Work Opportunity Tax Credit (WOTC) and Employee Retention Credit (ERC). However, you cannot claim FICA tip credit on the same wages used for other wage-based credits. Our tax specialists will optimize your overall tax strategy to maximize all available credits.
Do I need to reduce my wage deduction?
Yes, when claiming the FICA tip credit, you must reduce your wage deduction by the amount of the credit claimed. However, this is still highly advantageous as a dollar-for-dollar tax credit provides more benefit than a deduction. Our analysis will show you the net benefit specific to your tax situation.
What if my employees don't report all their tips?
The FICA tip credit is based on reported tips only. We can help implement tip reporting best practices to ensure you're maximizing your credit while maintaining compliance. Improving tip reporting benefits both your business (through increased tax credits) and your employees (through increased Social Security benefits).
Have more questions about the FICA Tip Credit? Our tax specialists are here to help.
What Our Clients Say
Join thousands of satisfied restaurant and bar owners who've recovered significant tax credits
We recovered over $45,000 in tax credits we didn't even know we were eligible for. The process was incredibly simple on our end.
Michael R.
Owner, Fine Dining Restaurant Group
As a small bar owner, I was skeptical, but Tip Credit Partners delivered exactly what they promised. $18,500 back in my pocket with zero hassle.
Sarah T.
Owner, Neighborhood Bar
We recovered over $45,000 in tax credits we didn't even know we were eligible for. The process was incredibly simple on our end.
David L.
CFO, Regional Restaurant Chain