Restaurant & Hospitality FICA Tip Credit Calculator
Quickly calculate potential tax savings from the FICA Tip Credit for your tipped employees, including the 3-year lookback period.
Employee Details
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Must be above $5.15/hr federal threshold to generate creditable tipped wages
Your FICA Credit Estimate
Enter your details and click
“Calculate Credit”
Results will appear here
How the FICA Tip Credit Works
1
Identify Tipped Wages
The federal government uses a $5.15/hr threshold. All hourly earnings above this amount are considered creditable tipped wages.
2
Apply FICA Rate
Multiply the creditable tips by 7.65% (the employer's share of FICA taxes: 6.2% Social Security + 1.45% Medicare).
3
Claim Your Credit
The credit can be claimed on your annual tax return. You may also amend prior returns for up to 3 years to recover previously unclaimed credits.