Tips fuel your business and it’s time you took advantage of the unique tax benefits afforded to you. The FICA Tip Credit is a federal tax credit for employers with tip-driven employees. This IRS credit allows employers to claim a portion of the FICA taxes paid on employees’ tips as a credit against their own tax liability. On average, restaurants are seeing an IRS credit of $40,000.

Our partners at Adesso Capital have been helping bars and restaurants access the funds to efficiently run their business for nearly a decade and Tip Tax Credit is their latest service aimed to help you grow.

If you’re not already securing these credits, take advantage today and don’t leave money on the table. In case you needed a bit more convincing, here are a few reasons why leveraging Tip Tax Credit makes sense for your business:

  • Reduced Labor Costs: The credit comes from the employer’s portion of the taxes paid on tipped income, driving down your business’ bottom line.
  • Fewer Tax Liabilities: Because the credit is based on the bar/restaurant owner’s portion of taxed tips, total taxes owed to the IRS effectively drops.
  • Employee Satisfaction: Distributing and managing tips promptly and accurately leads to a positive work environment built on trust (your employees will know you’ve got their backs).

Ready to get started? Reach out to an Adesso representative here The New Mexico Restaurant Association with Adesso (adessocapital.com)