Good day,
We are reaching out to vendors and suppliers who already serve the service industries, including restaurants, bars, cafés, food trucks, hospitality businesses, hotels, country clubs, social clubs, salons, spas, barbershops, esthetics businesses, and other tip-based service businesses.
Many of these businesses may qualify for the FICA Tip Credit, but may not know it exists or may not know how to claim it properly. That is where we can help, and where you may be able to benefit as well.
The FICA Tip Credit is a federal tax incentive that helps qualifying food, beverage, and certain beauty service businesses offset the employer-paid Social Security and Medicare taxes on employee tips. In simple terms, if a business has tipped employees, this credit may help them recover money they are already paying out in payroll taxes.
As a Senior Advisor for GMG, I help connect business owners with a team that has spent over 25 years helping small business owners uncover tax credits, refunds, and savings opportunities that often remain hidden. The work can be complicated, but we make the process simple for both you and your clients.
Here is how the referral program works:
1. Tell your clients about our FICA Tip Credit service and direct them to our advisor site.
Right click on this image, save to your computer and print on your handouts, etc. We use the same ad so we know it works. Be sure to let them know to contact you and perhaps followup with them and let us know that you referred them (we'll need contact name, company name and city name to know you've referred them).
2. They visit the site, enter a few basic details, and may receive an estimate in about 60 seconds.
3. We follow up with them, or they can self-activate directly through the site.
4. When they subscribe to our service, we send you a $100 referral fee.
5. You continue sharing the opportunity with more clients.
This can be as simple as printing the above ad and using it as a bag stuffer, handout, invoice insert, newsletter feature, email mention, or conversation starter with the businesses you already serve.
We always ask new clients how they heard about us, but please also let us know when you send someone our way so we can properly track your referral.
This is a simple way to help your clients discover money they may be owed while creating an additional referral income opportunity for your business.
We may limit the number of referral partners so we can continue serving both clients and partners with excellence.
To learn more or discuss how to get started, please contact:
Terry Scott
Senior Advisor for GMG
Key Aspects of the FICA Tip Credit:
Purpose: It reduces the tax burden on employers for tips earned by employees, preventing them from having to pay taxes on income they did not directly pay.
Eligibility: The credit applies to businesses where tipping is customary (e.g., restaurants, bars) and, as of Jan 1, 2025, qualifying beauty services (such as hair salons), as explained by Tom Talks Taxes.
Calculation: The credit is based on the employer's share of FICA taxes on tips reported by employees that exceed the federal minimum wage standard of $5.15 per hour (or $7.25) for beauty services).
Claiming the Credit: Eligible employers claim this credit by filing Form 8846 with their federal income tax return.
Non-refundable: It is a general business tax credit, meaning unused credits can be carried back for one year or forward for 20 years.
This credit acts as a "dollar-for-dollar" reduction of tax liability, distinct from a deduction, making it a valuable tool for reducing tax liability.
