FICA Tip Credit is a credit for Employer Social Security Paid with respect to Employee’s Cash Tips. Only an employer in food or beverage industry, where the employees are getting tips, is applicable to receive the credit. If you paid Social Security and Medicare taxes on these tips, then you
deserve the tip credit based on how much tax you paid on those tips.

This FICA Tip Credit can be hundreds of dollars depending on the size of the company and how many employees you have.  Your business is eligible to receive credit for any Social Security and Medicare taxes it pays beyond the federal minimum page.  In other words, no credit is given for tips used to meet the federal minimum hourly wage rate.

To receive more information or to know about how to get the FICA Tip Credit, contact Garden State Payroll at or
give us a call at 877-898-0415