Restaurant TEFRA Service
An additional service that many of our restaurant customers take advantage of is our TEFRA and FICA Income Tax Credit Program.
If you serve food on your premises, employ people who are customarily tipped, and have more than 10 employees, chances are that you must comply with the Tip Equalization and Financial Responsibility Act (TEFRA) of 1982.
In addition, your restaurant may be able to save money with the FICA Income Tax Credit. Under the Internal Revenue Code section 45 (B), you may be eligible for a partial tax credit on tips that exceed the federal or state minimum wage, whichever is higher.
Click for a guided tour of our Restaurant and Tavern Services Program:
We provide you with the following services:
- Track declared tips
- Track credit card tips
- Perform allocations to satisfy TEFRA using the Share of Sales or Share of Hours Worked methods
- Prepare Form 8027
- Provide information for Form 8846
- Properly calculate all taxes related to tips
- Provide information to employees regarding all aspects of tip income via their pay stubs
Please download our TEFRA Tip Guide, prepared by our in-house Certified Public Accounting Team. TEFRA Guide with FICA Income Tax Credit
Government forms and documents associated with this service:
