Step-by-Step IRS Form 8846 Instructions - Fit Small Business
8846 tip credit IRS Form 8846, officially known as the "Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips," allows employers to claim a credit against their federal tax liability for the employer portion of FICA taxes paid on tips received by employees..8846 credit
Form 8846 allows eligible food and beverage employers to claim a credit for social security and Medicare taxes paid on employees' tips. This eventually supports compliance with IRS regulations and minimizing tax liability.8846 tip credit
The FICA tip credit can be requested when business tax returns are filed. It is reported on IRS Form 8846, which is sometimes called Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips. Determining if the FICA tax tip applies to your business can be a challenge.
