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FICA Tip Calculator

FICA Tip Credit Calculator

Calculate your FICA tip credit in just a few clicks and get an instant estimate of the tax savings your business is eligible for. This FICA tip credit calculator tool makes it easy to understand potential credits.

FICA Tip Credit Calculator

Estimate your employer FICA tax savings on tipped employees.

* IRS federal minimum wage base of $5.15/hour is applied.

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Estimate your potential FICA tip credit and explore how Enwage simplifies payroll.

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What FICA Tip Credit Calculator Does for Your Business

This calculator helps employers, especially those in restaurants, bars, and the hospitality industry, quickly and easily estimate the federal tax credit available for employer-paid Social Security taxes on employee tip income. By entering basic payroll and tip information, businesses can get an instant estimate of potential savings, plan payroll more efficiently, and ensure they are maximizing eligible tax credits without complicated calculations.
Why FICA Calculator

How FICA Tip Credit Calculator Works

Enter Total Tips

Input tips reported by employees.

Add Cash Wages Paid

Include hourly pay directly from the employer.

Confirm Minimum Wage Threshold

Applies to the federal or state minimum wage rules.

View Estimated Savings

See potential tax reductions instantly.

Tip Credit Calculator

Why Businesses Use a Tip Credit Calculator

Reduce Payroll Taxes

Claim credits on Social Security taxes paid for tipped wages.

Improve Cash Flow

Know potential savings before filing.

Stay IRS-Compliant

Align calculations with Form 8846 reporting requirements.

Plan To Staff Efficiently

Identify high-impact roles eligible for tip-based credits.

FICA TIP CALCULATOR

Frequently asked questions

What is a tip credit for employers?
A tip credit allows employers with tipped employees to reduce their federal tax liability based on eligible tip income. It helps businesses offset certain payroll-related taxes connected to employee tips.
Businesses that employ tipped workers—such as restaurants, bars, cafés, and hospitality companies, may qualify if employees report tips and meet minimum wage requirements.
FICA is a federal payroll tax that is automatically deducted from employee paychecks. Employers also contribute their share. These taxes are reported and paid through regular payroll tax filings to the IRS.
There is no fixed limit, but the credit amount varies depending on employee tips, wages, and the number of eligible employees.
Employers claim the tip-related tax credit using IRS Form 8846, which is filed along with the business’s federal tax return.
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