Restaurant Taxation: Calculating Tips and FICA Tip Credit; Food Donations, Sales Tax, and Employer Retention Credit

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Wednesday, January 5, 2022

Recorded event now available

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Course Materials

This course will discuss taxation issues unique to restaurants, including calculating and reporting tips, the enhanced deduction for food inventory, remitting sales tax, the FICA tip credit, and utilizing the employer retention credit with an emphasis on reducing taxes paid by the food industry.

Description

Sales tax considerations are immense. With 45 states and D.C. requiring sales tax collection and local taxes, charging, reporting, and remitting these taxes is challenging. In addition to each state and jurisdiction having its tax rate, states often charge varying rates for service, tangible goods, liquor, and take-out. Missing deadlines and payments can result in significant penalties.

Restaurants--an industry with high cash sales--are often targeted by states for sales tax audits. Restaurants that do not keep good records can find themselves in a quandary during audit, including being met with varying audit techniques to ascertain tax liabilities. Owners should be particularly careful since sales taxes are trust fund taxes and carry with them the potential for personal liability.

In addition to unique challenges, significant tax benefits are available to restaurants. These businesses receive an enhanced tax deduction for food donations and a lucrative FICA tip credit. Restaurants are eligible for employer retention credit as well.

Listen as our panel of restaurant experts helps alleviate taxing issues related to restaurant ownership. They will cover how to claim the FICA tip credit, best practices for capturing and reporting sales tax and tips, and taking advantage of the employer retention credit.

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Outline

  1. Restaurant taxation: an overview
  2. Reporting tips
  3. FICA tip credit
  4. Food donations
  5. Sales tax
  6. Cost segregation
  7. Employer retention credit
  8. EIDLs, PPP loans, and RRF status and repayments

Benefits

The panel will cover these and other vital issues:

  • How to report and claim the FICA tip credit
  • How restaurants can benefit from the recent QIP correction
  • What qualifies for the enhanced deduction for food donations
  • Which restaurants would benefit from a cost segregation study
  • Best practices for capturing and reporting employee tips

Faculty

Goldhardt, Sara
Sara L. Goldhardt, CPA

Director, State and Local Tax Services
GBQ Partners

Ms. Goldhardt has over 18 years of experience in federal and state and local tax, servicing both public and private...  |  Read More

Stamp, Matt
Matthew E. Stamp, JD, LLM

Director of State & Local Tax Services
GBQ Partners

Mr. Stamp has over 22 years of experience in state and local tax servicing clients in the restaurant, manufacturing,...  |  Read More

Unalan, Kaz
Kaz F. Unalan, CPA, CEPA

Director, Tax & Business Advisory Services
GBQ Partners

Mr. Unalan has over 20 years of experience providing tax compliance, consulting and planning for business and...  |  Read More

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