Taxes for restaurants and bars
Restaurants and cafes, bars and venues, caterers and food trucks: each keeps a different set of books, and we prepare them from one office in Metairie.
Who we work with
Three audiences, three different books.
Restaurants and cafes
All tips are income, and employees must report $20 or more a month in writing. Where tipping is customary and you normally employ more than 10 people, Form 8027 reports receipts and tips to the IRS each year.
Bars and venues
Louisiana’s Office of Alcohol and Tobacco Control handles alcoholic beverage permits, with applications and renewals online. Tipped wages carry employer social security and Medicare taxes, and a credit exists for the taxes on tips.
Caterers and food trucks
A New Orleans food vendor needs a city vending permit and an occupational license, plus a $150-a-year state health permit, and vending is allowed only in the City’s mapped areas.
What we do
The services restaurant clients use most.
- Bookkeeping & Payroll Monthly books, payroll and tax-return ready financials, with Form 8027 and tip reporting.
- Business Tax 1120-S, 1065 and LLC returns, sales tax, the FICA tip credit and IRS representation.
- Personal Tax Individual and multi-state returns, plus IRS support.
- S Corp Questions Election, owner payroll and the 1120-S. Sometimes the answer is no.
- Year-End Tax Planning Strategy built before filing season, with a dedicated point of contact.
- Quarterly estimated payments Our estimator splits your annual federal tax into four payments.
Rules that change the numbers
Published rules, each with its source.
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All tips an employee receives are income and subject to federal income tax, including the value of noncash tips. IRS Publication 531, as of November 2026.
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Employees report monthly tips of $20 or more to the employer in writing by the tenth day of the following month. IRS Topic 761, as of November 2026.
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Large food or beverage establishments (food served on the premises, customary tipping, normally more than 10 employees) file Form 8027; the 2025 return was due March 2, 2026, or March 31, 2026 if filed electronically. IRS instructions for Form 8027, as of November 2026.
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When tips reported in a payroll period are less than 8 percent of sales, the employer must allocate the shortfall among directly tipped employees. IRS instructions for Form 8027, as of November 2026.
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Food and beverage establishments claim the credit for social security and Medicare taxes paid on certain tips on Form 8846, part of the general business credit. IRS Form 8846, as of November 2026.
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Workers who received qualified tips in 2025 through 2028 can deduct up to $25,000, phasing out above $150,000 of modified adjusted gross income ($300,000 for joint filers). IRS newsroom, IR-2025-114, as of November 2026.
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Qualified overtime compensation is deductible up to $12,500 ($25,000 for joint filers) for 2025 through 2028, phasing out at the same income levels. IRS newsroom, IR-2025-114, as of November 2026.
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Under the FLSA, a tipped worker must get at least $2.13 an hour in cash wages, with a tip credit of up to $5.12 toward the $7.25 federal minimum. U.S. Department of Labor, as of November 2026.
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The combined Louisiana and Orleans Parish sales tax is 10 percent on tangible personal property (5 percent state, 5 percent parish), as of May 2025. City of New Orleans, as of November 2026.
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Jefferson Parish adds a 4.75 percent general sales tax on top of the 5 percent state rate. Jefferson Parish Sheriff’s Office, as of November 2026.
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An occupational license is required for any business operating in Orleans Parish; licenses expire December 31 and renew annually. City of New Orleans, as of November 2026.
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Jefferson Parish occupational license taxes run on gross receipts, minimum $50 per location; renewals due January 1, delinquent March 1. Jefferson Parish Sheriff’s Office, as of November 2026.
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Qualified improvement property, generally an interior improvement to nonresidential real property, is 15-year property under MACRS. IRS Publication 946 (2025), as of November 2026.
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Employers claim the work opportunity credit on Form 5884 for qualified first- and second-year wages paid to targeted group employees. IRS Form 5884, as of November 2026.
How we work with you
From the first conversation to year-round support.
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Discovery
We learn your business, your goals and your full financial picture.
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Planning
A year-round tax strategy built around your situation, not a template.
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Execution
Returns, bookkeeping and compliance, handled on time.
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Advisory
We adjust the plan as your life, your business and the law change.
Questions people ask
How does a restaurant report tips?
Employees report tips of $20 or more in a month to the employer in writing by the tenth of the following month. All tips are income, including noncash tips, and reported tips go into wages on Form W-2.
What is the FICA tip credit?
It is a credit for the social security and Medicare taxes an employer pays on certain employees’ tips, claimed on Form 8846 as part of the general business credit.
Who files Form 8027?
Employers operating a large food or beverage establishment: food served on the premises, tipping customary, normally more than 10 employees. The 2025 return was due March 2, 2026, or March 31, 2026 if filed electronically, and reported tips below 8 percent of sales are allocated among directly tipped employees.
Can tipped workers deduct tips on their taxes?
For 2025 through 2028, workers who received qualified tips can deduct up to $25,000, phasing out above $150,000 of modified adjusted gross income ($300,000 for joint filers). Qualified overtime compensation is separately deductible up to $12,500 ($25,000 joint).
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