Restaurants have access to two major payroll-related tax credits that can directly impact the bottom line. For operators managing high hiring volume and tipped employees, these credits can translate into substantial, recurring savings.
Tax Credit
WOTC
Work Opportunity Tax Credit
Federal tax credit for hiring employees from eligible groups, such as veterans and SNAP recipients
Up to $2,400–$9,600 per eligible employee
Must be completed during onboarding to qualify
Tax Credit
FICA Tip Credit
For Tipped Employees
A tax credit on employer-paid FICA taxes for tipped employees
Applies to tips earned above minimum wage
Credit is based on accurate payroll and tip reporting
Why Restaurants Miss Out on Tax Credits
Why Credits Go Unclaimed
It’s not that the credits aren’t available; it’s that the operational process isn’t aligned.
Restaurants may miss credits when:
WOTC screenings aren’t completed during onboarding
50 eligible WOTC employees = $120,000+ in potential tax credits, depending on eligibility and hours worked
FICA tip credits = ongoing annual savings tied directly to payroll volume, especially for operations with tipped employees
Across locations, this can mean hundreds of thousands in recoverable value.
Real Savings in Real Operations
Marco's Pizza
Multi-location restaurant operators are already seeing the impact of connecting their systems.
Marco’s Pizza, a multi-unit operator managing a growing team across locations, needed a more consistent way to handle onboarding, payroll, and employee data. As their operation scaled, disconnected processes made it harder to maintain accuracy and visibility.
By moving to a connected system, their team was able to standardize processes across locations, reduce manual work, and improve the flow of employee data from onboarding through payroll.
