The FICA Tip Credit Explained: Eligibility, Calculation, Filing &...

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..

8846 credit  Certain food and beverage employers (see Who Should File below) use Form 8846 to claim a credit for social security and Medicare taxes paid or incurred by the employer on certain employees’ tips.

8846 tip 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.