FICA Tip Credit Calculator

How much can you save?

Use our FICA Tip Credit calculator to estimate how much money you can save for your restaurant or brewery by using the tax deduction.

FICA Tip Credit Calculator

What Is The FICA Tip Credit?

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The FICA Tip Credit is essentially free money from the government that you can claim based on the tips your employees report. 

The credit is a way for the government to provide relief to businesses in the food and beverage industry, such as restaurants, bars, and breweries.

Before this credit was introduced, the IRS estimated that only about 15% of tip income was reported. By offering the FICA Tip Credit, the government encourages businesses to report tip income accurately, reducing the payroll tax burden on these establishments.

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How to Use The Calculator

Using our FICA Tip Calculator is quick and easy. Just input your average hours worked per week, average hourly rate, and average reported tips per week for the average employee. 

Our FICA Tip Credit Calculator will then do the rest, calculating your annual savings per employee. 

Get Help With The FICA Tip Credit & Other Tax Deductions