Form 8846: FICA tip credit for small businesses - tfx.tax
8846 tip credit How does the FICA Tip Credit work for employers in the food & beverage industry? The FICA Tip Credit offers food and beverage industry employers a way to reclaim a portion of the FICA taxes paid on employee tips. It provides both the potential for significant tax savings and an incentive for accurate tip reporting..8846 tip credit
Certain food and beverage employers (see Who Should File below) use Form 8846 to claim a credit for social security and Medicare taxes paid or incurred by the employer on certain employees’ tips.8846 credit
To get the FICA tax tip credit, you must complete Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, and attach the form to your tax return.
