Your employees earn tips. Review the taxes behind them.
Explore whether employer Social Security and Medicare taxes on qualifying employee tips could support a Section 45B tax credit—and whether prior returns need a closer look.
For food and beverage employers with reported employee tips.
Reported tips
Start with tips recorded through your payroll system.
Employer taxes
Review the employer taxes associated with those tips.
Prior claims
Check whether a credit was already calculated or claimed.
A payroll expense worth reviewing.
Restaurants and other qualifying food and beverage establishments may be able to claim a credit for certain employer Social Security and Medicare taxes paid on employee tips. Form 8846 is used for the Section 45B credit, which is part of the general business credit.
The review connects tip reporting, wages, employer tax records, and previous credit calculations. Tax professionals assess the applicable rules and the amount that can be claimed or used for each year.
A credit is not automatically a cash refund. If an eligible credit was missed, your adviser can assess whether a prior-year adjustment is appropriate and whether it can produce a refund. Prior claims, return procedures, and filing deadlines all matter.
Read the IRS Form 8846 guidanceFollow the tip records from payroll to the return.
The details of your business and each tax year determine the review—not a standard refund estimate.
Business activities
Discuss how your establishment provides food or beverages and how tipped employees work within that operation.
Tip and wage reporting
Review reported tips, employee wages, and the records used to determine the employer tax paid on those tips.
Existing credit calculations
Check previous Forms 8846 and income tax filings to understand what has already been claimed.
Prior-year opportunities
Discuss open tax years, potential adjustments, and the documentation your tax professional needs before filing.
Start with your payroll and previous returns.
You can book an initial conversation before gathering every document. Start with the tax years and the payroll records available.
- Food and beverage business type and locations
- Payroll provider and reported employee tips
- Tax years you want to review
- Previous tip credit claims and accountant contact
Give your tip tax history a clear review path.
Start with your records, identify prior claims, and discuss the appropriate tax review.
Discuss your business
Tell us about your establishment, tipped payroll, and the years you want reviewed.
Organize the records
Gather wage and tip reports, employer tax information, and existing credit calculations.
Review potential next steps
Discuss eligibility, credit use, and any prior-year filing questions with the tax professionals involved.
Questions before you begin?
What restaurant and food service employers ask about tip credits and refunds.
Ask us a questionIs the FICA tip credit the same as a payroll tax refund?
No. Section 45B is a business tax credit associated with certain employer taxes on tips. Whether it results in a refund depends on the business’s tax situation and the return involved.
What if our accountant already claimed the credit?
Provide the existing calculations and the years covered. A review should account for prior claims so the same credit is not claimed twice.
Can every tipped business claim it?
Do not assume eligibility from the presence of tips alone. The business activities, employee tips, and requirements for the relevant tax year need to be reviewed.
Can prior years be reviewed?
Ask about the specific tax years you want to discuss. Whether a return can be changed depends on the applicable deadlines, filing history, and procedures; there is no universal lookback promise.
Is there a guaranteed refund amount?
No. A refund cannot be established from employee count or industry alone. Any potential benefit must be supported by payroll records, previous filings, and the applicable tax rules.
Take a closer look at the tip taxes you’ve paid.
Bring your payroll questions and the tax years you want to discuss. Start with a FICA tip credit consultation.