If your employees get tips, you can get tax credits on your share of employer FICA taxes that could be worth $10,000-$100,000 annually.
Credentra is an AI-powered platform that automates FICA tip credit recovery for restaurants, bars, cafes, and other food & beverage businesses with tipped employees. We transform payroll and POS data into IRS-ready Form 8846 submissions, helping business owners maximize their tax credits while streamlining CPA workflows.
Pay nothing upfront. Only pay when we successfully recover tax credits for your business. No monthly fees, no subscriptions - pure performance-based pricing.
Deliver $10,000-$100,000+ in tax savings to your hospitality clients in days, not months. Eliminate tedious data work while generating IRS-audit-ready documentation with AI precision.
The FICA Tip Credit is a permanent federal tax credit that allows businesses where tipping is customary to reduce their income tax liability by claiming a credit on the employer's share of Social Security and Medicare (FICA) taxes paid on employee tips.
The FICA Tip Credit is a permanent federal tax credit that allows businesses where tipping is customary—such as restaurants, bars, hotels, and cafes—to reduce their income tax liability by claiming a credit on the employer's share of Social Security and Medicare (FICA) taxes paid on employee tips.
You may qualify if: Your employees receive tips directly from customers, tips are reported to you through payroll, and you already pay the employer portion of FICA taxes (7.65%) on those tips. Industries include restaurants and bars, coffee shops and cafes, hotels and catering companies, and other hospitality businesses where tipping is customary.
The credit is equal to the employer portion (7.65%) of FICA taxes paid on reported tips exceeding the federal minimum wage requirement. For example, if an employee earns $15,000 in reported tips, the business can potentially claim a credit of about $1,147.50.
Complete IRS Form 8846 (Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips), attach it to your business's annual income tax return, and maintain accurate payroll and tip reporting records.
Jonathan Michael, Founder & CEO of Credentra, brings extensive expertise in AI-powered financial technology and tax compliance automation to help hospitality businesses maximize their FICA tip credit opportunities.
Email: jonathan@credentra.ai
Website: https://credentra.ai
LinkedIn: https://www.linkedin.com/in/jmjonathanmichael/
Our automated software platform is currently in development. We are actively serving clients through partnerships with qualified accounting firms using robust, bespoke Excel models tailored to each business's specific payroll and tip structure. This ensures accurate FICA tip credit calculations while our AI-powered platform completes development.