One Big Beautiful Bill (OB3) Employer FICA Tip Credit

This provision is effective beginning 2025.

Historically, this credit has been limited to restaurant employers.  The new bill expands this credit to include personal care services. This includes barbering and hair care, nail care, esthetics, and body and spa treatments.

Typically, the employer claims this credit on the corporate tax return.  The credit then passes through to the shareholder’s personal tax return as a credit against their individual income tax.