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Restaurant

Accounting solutions for restaurants and food businesses

Section 45B FICA Tip Credit on Form 8846: The Quiet Six-Figure Tax Break Most Restaurant Owners Miss
·mike

Section 45B FICA Tip Credit on Form 8846: The Quiet Six-Figure Tax Break Most Restaurant Owners Miss

How restaurant, bar, and hospitality employers compute the Section 45B FICA tip credit on Form 8846, using the frozen $5.15 minimum wage floor and the 7.65 percent multiplier — including the 280C add-back, common audit pitfalls around service charges, and how to recover up to three years of unclaimed credit through amended returns.

tax-credits
restaurant
payroll
Form 8027: How Restaurants Apply the 8% Tip Allocation Rule and Avoid W-2 Box 8 Surprises
·mike

Form 8027: How Restaurants Apply the 8% Tip Allocation Rule and Avoid W-2 Box 8 Surprises

Form 8027 requires large food and beverage establishments to reconcile gross receipts against employee-reported tips and allocate any shortfall below 8% to directly tipped employees on W-2 Box 8. This guide covers the 10-employee filing test, the three approved allocation methods, the tip-versus-service-charge distinction, and the reconciliation discipline that keeps Box 8 empty.

restaurant
payroll
tax-compliance
No Tax on Tips: How the New $25,000 Above-the-Line Deduction Actually Works for Servers, Stylists, and Drivers Through 2028
·mike

No Tax on Tips: How the New $25,000 Above-the-Line Deduction Actually Works for Servers, Stylists, and Drivers Through 2028

The One Big Beautiful Bill Act creates an above-the-line deduction of up to $25,000 in qualified tips for tax years 2025 through 2028, available only to workers in IRS-listed tipped occupations and phased out above $150,000 MAGI ($300,000 joint).

tax-deductions
tax-planning
payroll
Section 45B FICA Tip Credit: How Restaurants and Salons Recover Employer Payroll Tax with Form 8846
·mike

Section 45B FICA Tip Credit: How Restaurants and Salons Recover Employer Payroll Tax with Form 8846

The Section 45B FICA Tip Credit returns 7.65% of employer payroll tax on reported tips above a frozen $5.15/hour floor for restaurants — and after OBBBA's 2025 expansion, salons, spas, and other personal-care employers can claim it on Form 8846 too.

tax-credits
tax
payroll
Restaurant Accounting Demystified: Prime Cost, Tip Pooling, and COGS
·mike

Restaurant Accounting Demystified: Prime Cost, Tip Pooling, and COGS

A working guide to the three numbers that decide whether a restaurant makes money — prime cost, food and beverage COGS, and tip pooling — with 2026 benchmarks, FLSA rules, and a weekly accounting cadence.

restaurant
accounting
cost-of-goods-sold
Restaurant Crowdfunding: How to Fund Your Restaurant Through Community Support
·mike

Restaurant Crowdfunding: How to Fund Your Restaurant Through Community Support

Learn how restaurant owners can leverage crowdfunding to turn loyal customers into investors, overcoming traditional financing challenges and fostering community support.

restaurant
crowdfunding
small-business
From $180,000 in Tax Debt to Financial Freedom: A Restaurant Owner's Journey Back
·elizabeth

From $180,000 in Tax Debt to Financial Freedom: A Restaurant Owner's Journey Back

A restaurant owner's candid account of accumulating $180,000 in tax debt and the steps taken to regain financial stability, offering insights into the challenges faced by entrepreneurs.

tax-compliance
financial-freedom
restaurant
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