ERC and Tip Credit - Spidell

ERC and Tip Credit

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Message Board ERC and Tip Credit

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    • #305311
      Anonymous
      Participant

      A restaurant client has tips included in qualifying wages for ERC. The client also qualifies for the Tip Credit on their income tax return. Is the amount of the Tip Credit deducted from the ERC to avoid duplication of credits from the same wages?

    • #305388
      Sandy Weiner
      Participant

      I’ve not seen anything in the law that requires that.  There is also nothing in the IRS FAQs that requires that.  See https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

      • #305396
        Anonymous

        Thank you so much Sandy.

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