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: Wedding caterers, corporate event caterers, private chefs
Coffee Shops & Cafes
Establishments serving beverages and light meals where baristas and counter staff receive tips.
Examples: Coffee houses, bakery cafes, breakfast spots
Other Qualifying Businesses
Various service establishments where employees customarily receive tips from customers.
Examples: Cruise ships, casino restaurants, food delivery services, valet services
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 FFCRA.biz
We specialize exclusively in maximizing FICA tip credits for the hospitality industry
Experties
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
Frequently Asked Questions
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
