FICA Tip Tax Credit Services in Houston
Most hospitality businesses miss out on the FICA tip credit, losing thousands in potential refunds. At Mayatax, we simplify the process—handling filings, ensuring compliance, and helping you claim the money you’ve already earned.
Stop Overpaying Taxes on Tips
If your hospitality business has tipped employees, there is a good chance you’re paying more in payroll taxes than you need to. Here’s the good news: the IRS actually offers a credit to help you recover those costs. It’s called the FICA tip tax credit, and it’s designed to reward businesses that play by the rules when it comes to reporting tips.
What Is the FICA Tip Tax Credit?
The FICA tip tax credit is a dollar-for-dollar tax break that helps employers reclaim the 7.65% in FICA taxes (Social Security and Medicare) paid on employee-reported tips above the federal minimum wage. This credit is available under IRS Code Section 45B and is especially beneficial for restaurants, bars, cafes, and other hospitality businesses. Here’s how it works:
- When tipped employees report their earnings, both you and the employee pay 7.65% in FICA taxes.
- You can claim back your share (7.65%) for tips exceeding the federal minimum wage requirement.
- The credit reduces your tax bill dollar-for-dollar, not just your taxable income
Who Qualifies (It’s Easier Than You Think)
The great thing about the FICA tip tax credit is that it is not complicated to qualify for, and you don’t need to jump through hoops to claim it. If you can meet the following requirements, you are likely eligible:
- You have employees who earn tips
- Those tips are reported to the IRS
- You pay the employer’s share of FICA taxes (7.65%) on those tips
- Your employees receive at least the federal minimum wage through their base pay
That’s it. No complex formulas. No hidden criteria. We at Mayatax will help you find out for sure, and if you qualify, we will make sure you get every dollar you’re owed.
Why Claim It? Because Every Dollar Counts
Payroll taxes are already a burden for employers, so why pay more than you should? An eligible reported tip of $100,000 can reduce your tax liability by $7,650. This makes FICA tip tax credit one of the best tax credits for small businesses. The benefits go way beyond savings:
- Lower your annual tax bill
- Offset rising labor costs
- Encourage accurate tip reporting from staff
- Free up cash flow to reinvest in your business
Benefits of Choosing Mayatax
When it comes to the FICA tip tax credit, you need more than a generic tax provider, you need a partner who knows the ins and outs of tip-related credits and how to get you the most from them. That is where Mayatax comes in.
Maximized Savings
We go beyond the basics. Our team knows how to uncover the full value of your FICA tip tax credit, helping you claim every eligible dollar, no more, no less.
Hassle-Free Procedure
We take care of the complex calculations, documentation, and filings, so you can stay focused on your business. Our approach means less back-and-forth, faster results, and no added stress.
Specialized Tax Expertise
Our professionals specialize in FICA tip tax credit compliance. From eligibility checks to audit-ready documentation, we provide end-to-end guidance tailored to your business.
What Our Clients Say
Let’s Get Started, Simple and Stress Free
Schedule Your Free Consultation
Book a free consultation through our online form or give us a call. You’ll connect with a FICA tip tax credit specialist who will learn about your business and your potential eligibility.
Share Your Payroll & Tip Records
Securely send us your payroll reports, employee tip data, and other supporting documentation. We’ll review everything to determine your eligibility and calculate your potential credit.
Let Us Handle the Filing
Once we confirm your eligibility, we will manage the entire process from credit calculation to IRS documentation, ensuring compliance and maximum savings, with zero guesswork on your end.
