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Discover how to claim the FICA Tip Credit faster with expert strategies that help food and beverage businesses recover thousands in overpaid payroll taxes — without IRS delays.
You’ve already paid your employees including payroll taxes and FICA on their customer-reported tips. But what you likely haven’t done yet is claim the savings you may be entitled to.
For hospitality businesses operating on tight margins and dealing with high turnover, this tax credit shouldn’t be overlooked. It could be the difference between staying afloat and scaling up.
Unfortunately, the FICA Tip Credit is buried deep in the tax code, often goes unnoticed by generic accounting software and is frequently filed too late or not at all.
According to research by the United States Government Accountability Office (GAO), fewer than 7% of eligible small businesses claimed COVID-19-related payroll tax credits last year, not because they didn’t qualify but because the tax credit went unnoticed or unclaimed.
Meanwhile, larger chains quietly secure five- and six-figure credits year after year.
So, how do you not only claim the FICA Tip Credit but also claim it fast?
Many business owners treat tax credits like a seasonal task, something to revisit when tax deadlines roll around. But if you're waiting until year-end to think about the FICA Tip Credit, you're already slowing down your potential savings.
The fastest way to get paid is to make your credit strategy part of your day-to-day operations, not an afterthought.
Here’s how to reframe your approach to the FICA Tip Credit:
When your systems are designed for year-round tax credit readiness, not just during tax season, you’re one step closer to claiming tax savings. Quickly. Confidently. On your terms.
One of the biggest bottlenecks in claiming the FICA Tip Credit is poor documentation. Waiting until year-end to tally tips invites delays and errors. Instead, sync your tip tracking with your payroll system in real time.
Ask yourself:
The IRS processes credit claims faster when there’s a clear, consistent audit trail. Manual reconciliations and last-minute exports increase the chance of red flags, delays or even disqualification.
Most businesses wait for tax season to claim credits but that’s not your only option. By working proactively with a tax credit specialist midyear, you can:
Some firms even offer advances or bridge funding based on your credit forecast, accelerating access to capital when you need it most.
Not all certified public accountants (CPAs) are created equal, especially when it comes to industry-specific tax credits. If your accountant hasn’t brought up Form 8846, isn’t familiar with tip-to-wage ratios or dismisses your eligibility without reviewing your payroll data, you’re missing out.
Real results require real expertise. Work with someone like the team at Anchor Accounting Services, who have claimed the FICA Tip Credit dozens or hundreds of times. Don’t wait for someone learning the process for the first time with your return.
Every quarter you delay is another quarter your money sits with the IRS instead of providing savings that could fuel payroll, equipment upgrades or opening that second location.
In the hospitality world, where margins are tight and expenses spike with seasonality, delayed tax savings don’t just hurt your books; they choke your momentum.
The FICA Tip Credit isn’t just about dollars. It’s about agility. It’s about reinvesting faster, hiring sooner and building stability in a high-turnover industry.
So, why do large chains consistently get it right? Because they don’t wait. They don’t guess. They never leave tax credits on the table.
Here’s how to operate like a franchise even if you’re just one location:
Start thinking like the brands you’re competing with and your savings and growth will follow.
If you’re paying FICA taxes on employee tips, you’ve already done the hard part. Those savings? It’s sitting there, waiting to be claimed. But the IRS won’t remind you, and it won’t file the paperwork for you either.
Now’s the time to stop leaving money on the table.
At Anchor Accounting Services, we help restaurant and hospitality businesses recover thousands in overpaid payroll taxes faster, cleaner and without IRS headaches. No upfront fees. No risk. You only pay if we help you get paid.
Check your eligibility in minutes
Start recovering what’s yours. Don’t wait for tax season to take control today.
The fastest way to claim the FICA Tip Credit is to build it into your payroll strategy throughout the year. By automating tip tracking, maintaining clean records and working with a specialist who understands IRS Form 8846, you can streamline the filing process and reduce processing delays.
You can recover 7.65% of FICA taxes paid on employee-reported tips. Depending on your tip volume, this could mean thousands or even tens of thousands of dollars per year, especially if you file retroactively for up to three years.
Yes. Eligibility is based on your industry and how tips are reported, not on the size of your business. If you operate in the food or beverage industry, your employees earn tips for providing, delivering or serving food, and you report those tips through payroll, you likely qualify.
Not all CPAs specialize in hospitality tax strategy. If your accountant hasn’t mentioned Form 8846, doesn’t track your tip-to-wage ratio or dismisses the credit without reviewing your payroll data, they may not be equipped to help you recover what you’re owed.
