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 tip credit
Beverage and Food establishments can file the Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, Form 8846. Use the form to claim a credit against the taxes paid on employee tips. The deduction is part of the general business credit on Form 3800.8846 credit
Complete Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, and, in most cases, attach this form to your tax return to claim the credit.
