- 803 Business Parkway Richardson, TX 75081
- +1 (214) 923-1694
If your business has tipped employees, you could recover a portion of the FICA taxes you already paid on reported tips. Use this free tool to estimate your credit and see how much you might save.
This opportunity comes from the FICA Tip Credit, a tax incentive available to employers in industries where tipping is common, such as restaurants, bars, and salons. The credit allows you to reduce your business’s federal income tax liability based on the employer portion of Social Security and Medicare taxes paid on employees’ tip income. Many eligible businesses miss out on this benefit, so estimating your potential credit is a smart move toward lowering costs and boosting profitability.
A federal tax credit (IRS §45B) that lets employers recover part of the Social Security and Medicare taxes paid on employee‑reported tips.
Businesses where tipping is customary: restaurants, bars, hotels, casinos, catering, food trucks, and similar hospitality employers.
Typically about 7.65% of reported tips. Use the calculator above to estimate your savings.
No. You don’t change wages or tip practices to qualify for the credit.
You can amend and claim refunds for up to 3 prior tax years.
Many businesses see refunds/credits processed in approximately 16–20 weeks, depending on the IRS.
Forms 941, 8027 (if applicable), payroll/tip reports, and related filings. We’ll walk you through everything.
