Restaurant Owners: Understanding the FICA Tip Credit and ... -...
8846 tip credit How does the FICA Tip Credit work for employers in the food & beverage industry? The FICA Tip Credit offers food and beverage industry employers a way to reclaim a portion of the FICA taxes paid on employee tips. It provides both the potential for significant tax savings and an incentive for accurate tip reporting..8846 credit
Our IRS Form 8846 instructions walk you through the calculations needed to claim the FICA tip credit and complete the form.8846 tip credit
IRS Form 8846 allows employers in the food and beverage industry to claim the Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips. This benefit is a component of the general business credit, providing a dollar-for-dollar reduction in tax liability.
