If your employees earn tips — like servers, bartenders, or baristas — your business pays payroll taxes on those tips. The FICA Tip Credit lets you get some of that money back from the IRS.It’s a federal tax credit (IRS Code §45B) that gives businesses like yours a refund on the Social Security and Medicare taxes you’ve already paid on employee-reported tips.
One restaurant owner with 12 employees had been paying payroll taxes on tips for years. We uncovered thousands of dollars in unclaimed credit – all from tips they were already reporting. We got them a huge refund and they didn’t have to make any internal changes to payroll or operations.
At Anchor Accounting Services, this is what we do — and we do it with the people who know the IRS inside and out. Our team includes tax attorneys, former IRS executives, and industry experts specializing in credits like this. We handle everything: calculations, paperwork, IRS filings — even audit protection. With zero upfront cost and full support from start to refund, you’re in expert hands.
You can go back 3 years, claim your refund, and even carry forward any unused credits for future tax years. It’s one of the most overlooked credits in the food & beverage industry — and we’re here to ensure you don’t miss out.
To qualify for the FICA Tip Credit, your business just needs to meet three simple criteria:
This credit is designed for businesses where tipping is customary, including:
Restaurants, cafés, and coffee shops
Bars, breweries, and wineries
Hotels, resorts, and casinos
Food trucks, catering companies, and event venues
Any business where food or drinks are served and tips are collected
You must have employees who:
Regularly receive tips from customers
Report those tips as part of their wages through payroll
Are classified as W-2 employees (not contractors)
That includes:
Social Security and Medicare taxes (typically part of your payroll tax responsibilities)
These taxes must have been reported on your quarterly Form 941s
If that sounds like your business, you’re likely eligible — and we’ll verify your eligibility in minutes with a quick pre-qualification.
The IRS doesn't make it simple, but we do.
Complete a short questionnaire to assess if you qualify.
Send over your Form 941s and business tax returns — we’ll guide you through it.
Our team calculates your credit and prepares all necessary amendments.
We submit everything on your behalf once you approve.
Most businesses receive their refund in 16–20 weeks.
We know the system inside and out — and how to work it in your favor.
We only get paid when you do.
We take care of everything — from calculating your credit to preparing and submitting all necessary tax forms to the IRS.
Every claim we file comes with audit support, so you’re covered if the IRS ever comes knocking.
You’ve already done the hard part — running the business, paying the taxes, reporting the tips. Now let us do our part and help you claim the refund you deserve.
Tipping accounts for an estimated $38 billion in annual revenue, according to IRS data. Transform payroll taxes into a long-term advantage with help from our tools and industry expertise:
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Built-in tax prep support to simplify filings and reduce CPA workload
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IRS defense protection with audit-ready documentation
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Optional refund advances help improve short-term cash flow
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Full credit optimization to help maximize what you’re eligible to claim
4.2 million words, 17,000 pages of regulations to wade through in the U.S. tax code (Source: NTU.org)
Over 6 billion hours spent filing taxes each year (Source: NTU.org)
More than $11 billion in unclaimed tax credits annually (Source: Federal Reserve Bank of Chicago).
Our full-service FICA Tip Credit program helps you unlock cash flow, stay IRS-compliant and turn payroll taxes into a financial advantage. It includes audit defense, tax preparation support, credit tracking and optional refund advance options to keep your business moving.
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Check Eligibility
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Upload Documents
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Get Paid
If your team earns tips, you’re likely paying payroll taxes on that income. The FICA Tip Credit lets eligible businesses recover a portion of the Social Security and Medicare taxes paid on reported tips, without changing wages or tipping practices.
This credit is available under IRS Code §45B, yet many business owners don’t know it exists. Businesses can claim past credits for up to three years and carry forward any unused amounts. It’s one of the food and beverage industry’s most overlooked tax incentives, and when fully optimized, it can help improve cash flow, reduce tax liability and strengthen audit readiness.
Prior to the FICA Tip Credit, only around 15% of tip income was reported to the IRS. At Anchor Accounting Services, we bring the tools and full-service support to help you file with confidence. Our team includes industry experts who manage everything from eligibility review to full-service filing, audit defense and optional refund advance support.
No upfront cost. No confusion. Just a better way to access the savings you may be owed.
To qualify for the FICA Tip Credit, your business just needs to meet three simple criteria:
1
This tax credit is designed for businesses where tipping is customary, including:
Restaurants, cafés, and coffee shops
Bars, breweries, and wineries
Hotels, resorts, and casinos
Food trucks, catering companies, and event venues
Any business where food or drinks are served and tips are collected
2
You must have employees who:
Regularly receive tips from customers
Report those tips as part of their wages through payroll
Are classified as W-2 employees (not contractors)
3
That includes:
Social Security and Medicare taxes (typically part of your payroll tax responsibilities)
These taxes must have been reported on your quarterly Form 941s
If that sounds like your business, you’re likely eligible for a FICA Tip Tax Credit. We’ll verify your eligibility in minutes with a quick pre-qualification. You may be eligible for savings from up to 3 open tax years.
Start My Free Pre-Qualification1
Complete a short questionnaire to assess if you qualify.
2
Send over your Form 941s and business tax returns to estimate your payroll costs.
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Our team calculates your credit and prepares all necessary amendments.
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We submit everything on your behalf once you approve.
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Most qualifying businesses receive their refund in 16–20 weeks. Need cash now? Offer optional advances on eligible tax credit amounts.
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We're on your side in the event of an audit. We provide audit response support and compliance validation.
Our program turns tax credits into cash flow, with built-in protection, prep and support every step of the way, all at no upfront cost to you.