Restaurant payroll and tip credit

THERE'S MONEY HIDING IN YOUR PAYROLL.

Restaurant payroll is its own animal. Tipped wages, overtime math, tip-credit compliance, and the FICA tip credit waiting to be claimed every period. We run payroll the way a restaurant operator would actually want it run, and we recover the payroll tax you've been quietly overpaying on tips. Most accountants never go looking.

FICA tip credit. Tipped-wage compliance. Clean payroll runs.

Tip credit recovered
Does your accountant do this?

Payroll is where restaurants quietly overpay.

Are you recovering the FICA tip credit?

The employer's share of payroll tax on reported tips is partly refundable, every single period. It adds up faster than you'd think, and it's routinely missed because nobody's actively looking for it.

Is your tipped-wage compliance clean?

Tip credits, overtime calculations on tipped staff, hour rules that vary by state. There's a lot of room to be wrong, and being wrong is expensive. We keep the compliance clean and audit-ready.

Are you catching overstaffing before payday?

Labor creep shows up in the schedule first, then in the P&L, then in your bank account. By the time it's on the P&L, you've already paid for it. We flag the drift while you can still adjust.

Are POS tips reconciling to payroll?

Clean reporting is what makes the tip credit claimable. If your POS and your payroll don't agree, the credit isn't defensible. The reconciliation is unglamorous and exactly the thing we do.

Estimate your credit

How much is hiding in your payroll?

Most restaurants leave the FICA tip credit on the table. Move the sliders for a rough annual estimate , then we'll find the exact number.

Tipped employees12
Avg weekly tips / employee$180

The FICA tip credit lets you recoup the employer payroll tax (7.65%) you pay on reported employee tips. The cleaner your tip reporting, the bigger the recovery.

Estimated annual credit
$8,592

Based on ~$112,320 in reported tips per year across 12 tipped staff.

Claim it with VAST

Rough estimate for illustration only , actual credit depends on tip reporting, the $5.15/hr wage floor, and your filing. VAST calculates the exact figure.

Payroll, handled

Restaurant payroll without the surprises.

Accurate runs every period. Clean tip reporting. And the tax recovery your restaurant has been owed but hasn't been getting.

Payroll runs

On time, accurate, with the restaurant-specific categorization built in. Tip pools, voids, comps, overtime, all where they should be, every cycle.

FICA tip credit recovery

The credit captured every period, not just at year-end. The savings show up in your account on a real cadence instead of all at once if you happen to be lucky.

Tipped-wage compliance

Tip credits, overtime, state minimums, all kept current and clean. If the rules change, we change with them so you don't have to track it yourself.

POS to payroll reconciliation

Period-by-period matching of POS tips to payroll records so the credit is defensible and the underlying numbers tell the truth.

Labor visibility

Weekly labor as a share of sales, broken down where it matters. You see the drift while it's still cheap to fix instead of after payday.

Transitions handled

If you're switching from another provider, we manage the migration end to end. No gaps, no double-runs, no employees missing a paycheck.

Tanya McCaffery, CPA ,  founder of VAST
Meet Tanya McCaffery, CPA

A CPA who actually owns restaurants.

Tanya is Founder & CEO of VAST and Co-Owner & CFO of Local Food Group , a multi-unit Reno restaurant group. She's built and operated brick-and-mortar restaurants and reviewed thousands of restaurant P&Ls. She reads your numbers like a line cook reads a ticket.

CPA20+ YearsB.S. Accounting, UNRRestaurant OwnerFractional CFO
Great Basin BrewingLiberty Food & WineCucina LupoPizzeria LupoOverland
“Having a dedicated team of professionals that knows the dynamics of our business has been key to our growth and financial health.”
VAST client, multi-unit operator

Questions, answered.

What is the FICA tip credit, exactly?
It's a federal credit that lets restaurant employers recoup a portion of the payroll tax (7.65%) paid on employee tips above a statutory wage floor. Reported correctly, it adds up to a meaningful number every year, often multiple thousands per location.
Why do so many restaurants miss it?
Two reasons. The credit needs clean tip reporting (POS to payroll has to line up), and it needs a CPA who knows to claim it. Generalist firms tend to lack one or both, so the credit goes unclaimed year after year.
Can you take over payroll from our current provider?
Yes, and we do it often. We migrate the data, tighten the tip reporting on the way in, and make sure the credit is being captured from your first cycle with us forward.
Is the calculator's number what I'll actually get?
Treat the calculator as a rough scale. Your exact credit depends on your real tip reporting and the wage floor in your state. During onboarding we calculate the precise figure from your actual data.
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