Unlock the FICA Tip Tax Credit
Hospitality and service businesses can reduce their tax liability by claiming credits on employee tips.
IRS credit for employers paying payroll taxes on reported tips.
Who Qualifies
Restaurants, bars, cafes, clubs, salons.
Employers paying FICA taxes on tipped income.
Why It Matters
Dollar-for-dollar reduction of tax owed.
Recover up to 7.65% of qualified tips.
Can be claimed retroactively.
How We Help
Eligibility review
Payroll/tip audit
Credit calculation
Filing & compliance
Refund or reduced tax liability
FICA Tip Tax Credit – FAQs
What is the FICA Tip Credit?
It’s a dollar-for-dollar tax credit for employers who pay FICA taxes on reported tips—helping offset the employer’s Social Security and Medicare burden.
Who qualifies?
Restaurants, bars, cafes, hospitality businesses, salons—anywhere employees receive and report tips and employers pay FICA. TipCreditPartners defines eligibility broadly across hospitality sectors. tipcreditpartners.com
How much can I claim?
Up to 7.65% of qualified tip income, per employee, depending on your tipping and reporting systems. tipcreditpartners.com
Can I claim credits retroactively?
Yes. Depending on records, many businesses can amend past years’ returns to capture missed credits.
Do my employees have to report tips exactly?
They must report tips to the employer under IRS forms. We help you align records to qualify.
What documentation do you need?
Payroll reports, tip distribution records (e.g. 8027), time logs, any tip allocation schedules.
Is there risk of audit?
Proper documentation and compliance help minimize risk. Our team ensures your claim is structured responsibly.
Are there hidden fees?
No. As is typical in the industry, you pay only if we successfully recover for you.
