Frequently Asked Questions

Here are some of the most popular questions clients ask us about the FICA Tax Credit. If you have a specific question in mind, please do not hesitate to contact us below.

It’s a federal tax credit that helps tip-based businesses who serve food and drinks, get money back for the payroll taxes they’ve already paid on employees’ tips. Employers are paying 7.65% tax on reported tips their employees receive. This money can now be refunded to the business!

Businesses who serve food and beverages where tipping is customary. Such as restaurants, bars, cafes, hotels, casinos, coffee shops, resorts, catering companies, etc. Any business that serves food and beverages and receives tips from customers

We offer a refund advance option to receive your credit within 2 weeks! The standard processing time with the IRS can be 16-40+ weeks.

Yes! We can help you claim for the past 3 years. As long as you filed your taxes, our team can help you claim the Fica Tip Credit for 2022, 2023, and 2024. 

Many business owners are receiving tens or even hundreds of thousands in refund credit! You can get back up to 7.65% of all eligible reported tips. That's the amount you paid in Social Security and Medicare taxes on those tips.

We need the following documentation for each year your claiming for:  business tax returns, personal tax return, quarterly 941s and payroll wage reports (from payroll provider)

No problem! Each owner will need to create an account, upload their personal taxes, and sign an agreement. Only the original owner will need to upload the business documentation. 

Our accounting team creates and files business amendments for each year you are eligible. The IRS will amend your taxes for the years you qualify and issue a refund check.  

Great, you still qualify! The credit only excludes tips used to meet the old federal minimum wage of $5.15/hour. Anything above that still counts.

I’m not entirely sure of the exact day the final numbers for May came in, as it sometimes takes a couple of extra days for us to receive the rejection data from iDefend. For May, we received payment for just 36 sales from iDefend.