FICA Tip Credit Tax Automation | TipShift from Rockerbox

What Is the FICA Tip Credit?

The FICA Tip Credit (Section 45B) is a federal program that rewards restaurants and other hospitality employers who pay FICA taxes on employee tips. When a server or bartender reports tips as income, you match FICA tax on those wages. The IRS allows you to recapture that employer portion through the FICA Tip Credit, claimed on IRS Form 8846.

It’s a dollar-for-dollar credit (not a deduction) that reduces your business’s income tax liability. The credit can also be claimed retroactively for any open tax years, putting thousands of dollars back into your operation.

Explore TipShift →

How the Credit Works

Integrate

TipShift syncs securely with your point of sale (POS) and payroll systems, capturing accurate tip and wage data for each employee.

Calculate

Our automated Section 45B engine applies IRS rules to estimate your eligible credit—often thousands per location per year.

File & Claim

Rockerbox prepares IRS Form 8846 with supporting records so you can claim your credit safely and maximize returns.

Why Use TipShift by Rockerbox

Built by Rockerbox, TipShift is the only FICA Tip Credit solution designed specifically for hospitality employers.

Purpose Built Software: Automates evaluation and Form 8846 filing end to end.
POS and Payroll Integration: Works with Clover, Toast, and other platforms.
Audit Ready Documentation: Full support for IRS recordkeeping requirements.
Expert Oversight: Rockerbox tax professionals validate every submission.

Explore TipShift →

Benefits to Your Business

Recover

Recover your share of FICA taxes on employee tips.

Improve

Improve cash flow and restaurant margins.

Claim

Claim credits from open tax years without affecting staff pay.

Compliant

Ensure IRS compliance with automated audit trails.

Who Qualifies

Full service and casual restaurants
Bars, lounges, and taverns
Hotels, resorts, and country clubs with tipped staff
Multi location or franchise groups in the hospitality industry

Frequently Asked Questions

What is the FICA Tip Credit?

It’s a federal tax credit under Section 45B allowing employers to recover the FICA tax they pay on employee tips that are reported as income.

Who can claim it?

Any business where tipped employees receive more than $20 per month in gratuities—commonly restaurants, bars, and hospitality groups.

Can I claim past credits?

Yes. Employers can typically amend returns for open tax years to recover missed credits.

Will it work with my POS system?

Yes. TipShift integrates with leading POS platforms for seamless reporting and calculation.

Start Recovering What’s Yours

You’re already paying FICA taxes on employee tips—now it’s time to get credit for them. TipShift by Rockerbox makes the FICA Tip Credit simple, accurate, and fully compliant.

Explore TipShift