07/25/2025
🚨 Important News for Restaurant Owners & Staff 🚨
New “No Tax on Tips” Law Starts in 2026 – Here’s What You Need to Know!
A major change is coming under the new One Big Beautiful Bill Act (OBBBA) — and it’s great news for the restaurant industry!
Starting January 1, 2026, voluntary tips of up to $25,000/year will no longer be subject to federal income tax for eligible employees. 🎉
🔍 Key Highlights:
✅ Tips will be income tax-free (but still subject to Social Security & Medicare taxes)
✅ Service charges are NOT considered tips – only voluntary customer payments qualify
✅ Tip Credit stays — restaurants can still claim the F**A Tip Credit and save thousands annually!
📌 What Restaurants Should Do NOW:
• Keep reporting all tips through 12/31/25
• Update payroll systems to separate taxable wages and F**A-reportable tips
• Train your team to avoid tip vs. service charge confusion
• Prepare to claim the valuable F**A Tip Credit
💼 We’re Here to Help:
Our team can guide you through compliance, payroll changes, and help you maximize your savings.
👉 Don’t wait—get ahead of the curve now!
📅 Book a consultation or tip audit today.
**ACredit
