How a Restaurant Client Saved ~$27K in One Year
How proactive tax planning saved this restaurant thousands in tax dollars
The information on this webpage is for general education purposes only and is not intended to be taken as tax or legal advice for any specific situation. Statements on this website do not guarantee specific outcomes for any client or potential client.
Restaurant owners have access to massive savings through an exclusive tax credit that many other businesses can’t touch. But most don’t even realize it—and their CPA isn’t proactively helping them claim it, either.
Our founder, Kyle Ferrara, told one restaurant client how much was on the table, and they laughed in his face. Then they pocketed ~$27,000.
Here’s how it’s done.
Maximize tax credits through proactive tax planning
Kyle could help his client save nearly $27,000 because unlike many other CPAs, he knew to take advantage of a payroll tax incentive that most restaurant owners don’t know about.
It’s called the FICA (Federal Insurance Contributions Act) Tip Credit.
This incentive lets eligible businesses in the food and beverage industry qualify for a credit on specific Social Security and Medicare taxes paid on employee tips that exceed the federal minimum wage. Essentially, businesses can get a refund of the payroll taxes paid on employees’ tips.
The FICA Tip Credit is one of about 30 general business tax credits that can significantly lower tax liability and often go unclaimed.
Many CPAs miss this credit opportunity either because they aren’t familiar with the nuances of the restaurant industry or don’t take the time to fully understand a client’s operations.
But the implications are huge.
Any restaurant with tipped employees can claim this meaningful tax reduction, although the actual results may vary based on factors like the number of restaurant locations and total payroll.
Save Thousands with Smart Tax Guidance
As a business owner, you deserve to know about and take advantage of the tax opportunities available to you. By taking the time to understand how you operate and what you want to achieve, FERVELL CPAs can help uncover credits and incentives that often go overlooked.
Saving restaurant owners tens of thousands in taxes with the FICA Tip Credit is just one example of that.
Here’s other tax credits we can help you claim:
Work Opportunity Federal Tax Credit: For businesses that hire employees from target groups that face significant barriers to employment.
Disabled Access Credit: A tax credit for businesses that incur expenses for making their establishment ADA-accessible.
R&D (Research & Development) Credits: An incentive for businesses that develop or improve products, formulas, software, and more.
With the right guidance, you can also access opportunities that save your business hundreds or thousands, helping you keep more of what you earn and put it to work where it matters most.
What Savings Can Your Business Unlock?
Many restaurant owners tell us they only heard from their CPA once a year when it was time to file their taxes. But you want more. You deserve proactive advice that maximizes every opportunity.
At FERVELL CPAs, we don’t just input numbers. We turn them into a force that drives long-term success.