Restaurant Owners
Learn How To Save Money with the FICA Tip Tax Credit
(Example): Based on 1 Employee with the State of Florida Minimum Wage for Restaurant employees being $7.98
40 hours worked x $7.98 = $319.20
Tips Claimed +$500.00
Combined Total Amount $819.20
Now Calculate the number of hours by Federal Tipped Minimum Wage
40 hours x $5.15 = $206.00
Take the combined total earned by Florida Tipped Minimum Wage and Tips Claimed
and subtract the Federal Tipped Minimum Wage total.
$819.20-$206.00 = $613.20
Then multiply the new Tipped Wage amount by the FICA Rate of 7.65% (.0765)
$613.20 X 7.65%(0.765) = $46.91 weekly and $2,439.32 annual per individual, assuming that the hours and tips stay the same.
*Savings may vary depending on tip amounts