Fica.Credit

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IRS Section 45B — FICA Tip Credit

Stop leaving thousands on the table every single year.

If your employees earn tips, your business qualifies for the FICA Tip Credit under IRS Section 45B. Most hospitality businesses never claim it. We change that — fast, fully compliant, and at zero upfront cost.

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JR MK AL TS +
3,400+ businesses have claimed
over $128M in tax credits with us
Your Estimated Annual Credit
● Live Estimate
$0
Based on 25 tipped employees · avg. tips $180/wk
Current Year Credit
$47,200
3-Year Retroactive
$141,600
Claimed to date$141,600 potential
🛡️
Audit Protection
100% Included
⚡
Avg. Turnaround
21 Days
Trusted by businesses working with
Toast POS
Square
ADP
Gusto
Paychex
QuickBooks
The Problem

84% of eligible businesses never claim this credit.

The FICA Tip Credit has existed since 1993, but most restaurant and hospitality business owners have never heard of it. Their CPAs overlook it. Their payroll providers don't flag it. The result? Billions of dollars in unclaimed credits every year.

"We'd been in business for 12 years and nobody — not our accountant, not our payroll company — ever told us about this credit."

That's where we come in. Fica.Credit specializes in one thing: making sure your business claims every dollar it's owed under Section 45B.

$4.8B
Estimated unclaimed credits
across U.S. businesses annually
84%
Of eligible businesses
don't claim the credit
1993
Year the credit was
first enacted by Congress
3 Yrs
You can claim retroactively
for past tax years
Understanding the Credit
What is the FICA Tip Credit?

Under IRS Section 45B, businesses that employ workers who receive tips can claim a tax credit equal to the employer's share of FICA taxes paid on those tips — above and beyond the federal minimum wage.

📋

Dollar-for-Dollar Credit

This is not a deduction — it's a direct credit against your tax liability. Every qualifying dollar comes straight off what you owe the IRS, making it significantly more valuable than a standard write-off.

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Based on Tips Above Minimum Wage

You earn credit on the employer FICA taxes paid on tips that bring your employee's compensation above the federal minimum wage ($7.25/hr). The higher the tips, the larger your credit.

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Claim Up to 3 Past Years

Didn't claim in previous years? File amended returns to recover credits from up to three prior tax years. For many businesses, this retroactive recovery is worth six figures.

Free Estimator
How much is your business owed?

Get an instant estimate based on your business details. Powered by the actual IRS Section 45B formula.

2026 Tax Year Ready IRS Form 8846 Compliant

Section 45B Tip Credit Estimator

Comprehensive calculator for the General Business FICA Tip Credit.

1. Calculation Presets

2. Workforce Data

$/hr
hrs
$

3. Official Credit Estimate

Estimated Annual Tax Credit
$0
This non-refundable credit offsets your federal income tax liability dollar-for-dollar.
Tip Allocation Breakdown
50% Creditable 50% Uncreditable
Form 8846 Line Item Breakdown
Gross Tips Reported$0
Tips Applied to Min. Wage (-)$0
Total Creditable Tips$0
Social Security Tax Credit (6.2%)$0
Medicare Tax Credit (1.45%)$0
Total FICA Tip Credit$0

This calculator provides estimates only. Your actual credits will be finalized and verified by our CPA team based on your specific payroll and tax documentation.

Our Process
How it works — from start to credit

We've streamlined the entire process down to four simple steps. Most clients are fully onboarded in under a week.

Free Consultation & Eligibility Check

We start with a quick 15-minute call to understand your business and confirm eligibility. No commitment, no pressure — just straight answers.

  • Review your business type and employee structure
  • Confirm tip reporting practices
  • Provide preliminary credit estimate
📞
15-minute call
No commitment
Instant eligibility answer

Secure Payroll Data Upload

Share your payroll records through our encrypted portal. We integrate directly with Toast, Square, ADP, Gusto, Paychex, QuickBooks, and 40+ other platforms.

  • 256-bit AES encryption
  • Direct integrations with all major POS/payroll
  • Most uploads completed in under 10 minutes
🔒
Bank-level encryption
40+ integrations
SOC 2 compliant

We Calculate & Maximize Your Credit

Our team analyzes every eligible tip dollar across every qualifying employee — current year and retroactive. We leave nothing on the table.

  • Line-by-line payroll analysis
  • Retroactive recovery for up to 3 prior years
  • IRS-ready documentation prepared
📊
Per-employee calculation
Multi-year analysis
Audit-proof documentation

File, Claim & Collect Your Credit

We deliver filing-ready documentation to you or your CPA. You claim the credit on your tax return — or we prepare amended returns for prior years.

  • Filing-ready Form 8846 and supporting docs
  • Direct coordination with your CPA if needed
  • Amended return preparation for retroactive claims
✅
Form 8846 prepared
CPA coordination
Ongoing annual support
Why Fica.Credit
Built exclusively for hospitality businesses

We don't do R&D credits, ERC, or anything else. Our entire company is focused on one credit — so we do it better than anyone.

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No Upfront Cost — Ever

We operate on a contingency model. You pay nothing until your credit is successfully claimed and filed. If we don't find you a credit, you owe us nothing.

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21-Day Average Turnaround

From data upload to filing-ready documents in an average of 21 days. We move fast because we know every day matters for your business.

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Full Audit Protection

Every claim comes with comprehensive documentation and full support if the IRS ever has questions. We stand behind our work — always.

🤝

Works With Your CPA

We're not replacing your accountant — we're their secret weapon. We coordinate directly with your CPA or tax preparer to make filing seamless.

📡

40+ POS & Payroll Integrations

Toast, Square, ADP, Gusto, Paychex, QuickBooks — you name it, we integrate with it. Sharing your data is fast and effortless.

🔄

Retroactive Recovery

We go back up to three prior tax years to capture credits you should have claimed but didn't. For many clients, the retroactive piece is the biggest check.

Ready to see what you're owed?

Get a free, no-obligation estimate in under 2 minutes.

Get My Free Estimate
Client Stories
Hear from businesses like yours

We've helped thousands of restaurants, bars, hotels, and salons recover the credits they're owed.

★★★★★
"We recovered over $92,000 in credits across three years. I had no idea this credit existed, and our CPA never mentioned it. Fica.Credit made the entire process painless."
JR
James R.
Owner, 3-Location Restaurant Group · Dallas, TX
★★★★★
"$214,000 recovered. That's not a typo. We have 85 tipped employees across two properties and the retroactive piece was massive. This literally funded our kitchen renovation."
MK
Maria K.
GM, Boutique Hotel & Restaurant · Miami, FL
★★★★★
"As a CPA, I was skeptical. But Fica.Credit's documentation was flawless and their process saved me hours I would have spent calculating this for my restaurant clients."
DP
David P., CPA
Tax Advisor · Chicago, IL
Eligibility
Who qualifies for the FICA Tip Credit?

If your business has employees who earn tips and you pay the employer share of FICA on those tips, you very likely qualify. Here are the most common qualifying businesses:

Check My Eligibility →
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Restaurants & Cafés

Full-service, fast casual, fine dining — any restaurant with tipped employees.

✓

Bars & Nightclubs

Bartenders, servers, barbacks — every tipped position counts toward your credit.

✓

Hotels & Resorts

Housekeeping, bellhops, concierge, room service — tipped hospitality roles across the board.

✓

Salons & Spas

Hairstylists, estheticians, massage therapists — if they receive tips, you likely qualify.

✓

Catering & Event Venues

Event servers, catering staff, banquet employees earning tips on service.

✓

Other Tipped Industries

Car washes, valet services, delivery drivers — if tips are part of compensation, reach out.

Frequently Asked Questions
Everything you need to know

Still have questions? Our team is available by phone, email, or chat for anything not covered here.

What exactly is the FICA Tip Credit?

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The FICA Tip Credit (IRS Section 45B) allows employers to claim a dollar-for-dollar tax credit equal to the employer-paid portion of FICA taxes (Social Security and Medicare) on employee tips that exceed the federal minimum wage. It directly reduces your tax bill — not your taxable income — making it one of the most valuable and underutilized credits available to hospitality businesses.

How much does it cost to work with Fica.Credit?

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There is zero upfront cost. We work on a contingency basis, meaning we only get paid a percentage of the credit we successfully identify for you. If we don't find a credit, you don't pay anything. There's no risk to you.

Can I really claim credits from previous years?

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Yes. You can file amended tax returns (Form 1040-X or 1120-X) to claim the FICA Tip Credit for up to three prior tax years. For many businesses, this retroactive recovery represents the largest portion of their total credit. We handle the amended return preparation as part of our service.

Will this trigger an audit?

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The FICA Tip Credit is a well-established, legitimate tax credit that has been part of the tax code since 1993. Claiming it does not increase your audit risk. That said, every claim we prepare comes with comprehensive, IRS-ready documentation. In the unlikely event the IRS has questions, we provide full audit support at no additional cost.

What information do you need from me?

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We need your payroll records showing employee hours, wages, and reported tips. If you use a POS or payroll system like Toast, Square, ADP, Gusto, or QuickBooks, we can pull data directly through our integrations. Most clients complete the entire data sharing process in under 10 minutes.

Do I need to switch CPAs or payroll providers?

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Absolutely not. We work alongside your existing CPA and payroll provider. We prepare all the documentation and either hand it off to your CPA for filing or coordinate directly with them. Many CPAs actually appreciate our service because it saves them significant time on a specialized calculation.

How long does the process take?

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Our average turnaround from data upload to filing-ready documentation is 21 days. The actual credit shows up as part of your tax return filing, so the timeline for receiving the money depends on your tax filing schedule. For amended returns (retroactive claims), the IRS typically processes refunds within 3–6 months.
Get Started Today

Your business is owed money.
Let's go get it.

Join 3,400+ hospitality businesses that have recovered over $128 million in FICA Tip Credits. Free estimate, no obligation, no risk.

Get My Free Estimate Call (800) 555-0199
No upfront cost
21-day avg. turnaround
Full audit protection
100% IRS compliant