Turn your FICA tip credit into a financial advantage with full IRS compliance
What is the FICA Tip Credit?
The FICA Tip Credit is a federal tax credit available to employers in the food and beverage industry who pay Social Security and Medicare (FICA) taxes on tips earned by their employees. If your team regularly earns tips, you may be eligible to reduce your payroll tax liability — and in some cases, receive a refund. Outcomes vary depending on your eligibility and filing history.
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Who Qualifies?
This credit is designed for businesses where tipping is customary for providing food and beverages and employees report tips as income. Typical qualifying businesses include:
Restaurants and food service establishments
Bars, cafes, nightclubs, lounges
Hotels, resorts and hospitality venues that serve food and beverages
Any employer in the food and beverage industry who pays FICA taxes on reported tips
What Anchor Accounting handles for you
Full-service FICA tip credit calculations using historical payroll data
IRS Form 8846 preparation and associated filing support
Retroactive amendments for missed credits (often up to 3 years)
Seamless integration with existing payroll records
Built-in IRS compliance and audit-ready documentation
Optional refund advances to help improve short-term cash flow
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Thousands of food and beverage businesses miss the FICA Tip Credit every year
Tipping accounts for an estimated $38 billion in annual revenue, yet the vast majority of food and beverage businesses fail to fully leverage the FICA Tip Credit. It’s one of the most complex and overlooked tax incentives, often assumed to be handled by a CPA or payroll provider. In reality, most payroll systems don’t include this in standard filings, and many accountants don’t offer the specialized audit support it requires.
That’s where we come in.
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Anchor makes it easy, safe and worthwhile
We specialize in helping businesses unlock the full value of this tax credit with minimal disruption. From eligibility screening to compliance and payout coordination, we manage the process end-to-end.
With zero upfront fees, audit-safe documentation, refund advance options and treasury-informed tracking, we’re your long-term partner in credit recovery.
