Our FICA Tip Credit Process

At Welsh Advisors, we take a methodical, data-driven approach to calculating and maximizing your FICA Tip Credit. Our process is designed to be thorough, accurate, and as streamlined as possible for your team.
 

What We Need From You
To complete your FICA Tip Credit analysis, we'll request the following documentation:

• Federal Form 940 — annual Federal Unemployment Tax return, which provides a high-level picture of your total payroll obligations for the year.

• Comprehensive Payroll Report — a detailed report listing each employee's name, hours worked, base wage before tips, tips received, and total compensation, including tips.

• Four Quarterly Federal Payroll Tax Returns (Form 941) — these returns allow us to reconcile your reported payroll taxes on a quarter-by-quarter basis and ensure nothing is overlooked.

• Hourly Rates — for all hourly employees, we'll need their applicable wage rates to accurately determine which tips qualify for the credit.

 

From Documents to Dollars

Once we have your documentation, our team analyzes your tipped employees' wages, isolates the qualifying tip income above the federal minimum wage threshold, and calculates the precise employer FICA taxes eligible for the credit. We handle the complexity so you can focus on running your business — and we deliver results you can take straight to your return.