1250: Understanding Tip Credits with Joshua Santana, Co-Founder of Cerboni Services

Summary

Podcast Summary: Understanding Tip Credits with Joshua Santana – Restaurant Unstoppable #1250

Date: February 5, 2026
Host: Chris [Eric Cacciatore, Restaurant Unstoppable]
Guest: Joshua Santana, Co-Founder of Cerboni Services
Theme: Deep Dive into Understanding Tip Credits – What They Are, How They Work, and How Restaurateurs Can Take Advantage of the FICA Tip Credit

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Episode Overview

This episode is a comprehensive exploration of tip credits—specifically the often-misunderstood FICA tip credit. Host Chris sits down with Joshua Santana, co-founder of Cerboni Services, to break down what tip credits are, how they differ from each other, common mistakes in claiming them, the impact of business entity choice, and crucial documentation and compliance strategies. The discussion is rooted in actionable advice and real-world examples, giving restaurateurs both clarity and practical steps to save on federal taxes and ensure proper compliance.

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Key Discussion Points & Insights

1. Motivational Kick-Off

• Success Mantra (04:45):
  • "Don't be afraid to give up the good to go for the great." – John D. Rockefeller
  • Joshua Santana: “A lot of times people get comfortable on the position that they're in and they think it's smooth sailing...but they can do better.” (04:58)

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2. What Are Tip Credits? Differentiating 'Tip Credit' from 'FICA Tip Credit'

[05:53–09:07]

• Tip Credit (Minimum Wage Offset):

  • Allows employers to use tips received by employees to meet minimum wage requirements.
  • Example: If minimum wage is $7.25, the employer pays $2.13, and tips make up the rest.

• FICA Tip Credit (The Focus of This Episode):

  • A federal tax credit for employers on the Social Security and Medicare taxes they pay on employees’ tips.
  • Joshua: “The FICA tip credit is I’m actually going to get credit back from the government when I file my tax return and reduce my tax liability.” (07:01)

• Confusion: Many restaurateurs—and even CPAs—confuse or conflate these two, leading to missed opportunities.

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3. Why Is the FICA Tip Credit Important?

[09:07–11:43]

• Roughly 50% of restauranteurs are unaware of or do not utilize the FICA tip credit.
• Joshua: “I see multiple times...new clients...they're not utilizing it, not getting this credit—and it’s something that’s going to be able to give them and pay less federal income tax.” (05:53)
• Reason for lack of use: confusion, lack of specialist CPAs, and poor recordkeeping.
• Significant retroactivity: “You can also amend your return...retroactively do for the past three years, not more than that. And it can always roll over—for the next 20 years.” (11:05)

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4. Key Concepts & Who Qualifies

[11:43–14:33]

Key Concepts

• Recordkeeping is critical: Maintain clear records of all tips paid, segregated from service/gratuity charges.
• Specialist CPA/accountant matters: Industry specialists are more likely to help restaurateurs capture these credits.

Who Qualifies?

• Any business in hospitality (restaurants, bars, possibly other tipped industries) where tips are received and reported.
• Applies to employees (not contractors).
• Not limited to restaurants, but prevalent there.

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5. How the FICA Tip Credit Works

[14:33–16:00]

• Calculation Basis:
  • Credit is based on employer FICA taxes paid on tips reported by employees in excess of the federal minimum wage.
  • Joshua: “It’s going to be anything above $7.25, which is federal minimum wage.” (15:20)
  • Subtract out the minimum wage portion; only tips above that amount are eligible for the credit.

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6. Common Mistakes That Reduce or Eliminate the Tip Credit

[16:11–26:45]

• Mixing Up Gratuity (Service Charges) and Tips:
  • Joshua: “GRAT and tips are viewed differently—GRAT does not apply or qualify for the tip credit.” (16:11)
  • Must be voluntary (true tip), not a mandatory service charge.
• POS and Payroll Integration Issues:
  • Tips and GRAT must be clearly separated in both POS and payroll systems.
  • Even with correct POS classifications, if payroll lumps them together, credit is lost.
• Failure to inform payroll providers about the handling of these line items (tips vs. GRAT).
• Simply not knowing about the credit or not asking preparers the right questions:
  • Joshua: “Another one is not knowing it at all, or the person preparing doesn't know about it...” (22:58)
• Estimated value: Real-world examples show $50K or more per year, per location, is possible in federal savings.
• Retroactive amendment possible for the last three years.

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7. Documentation Required for Claiming the FICA Tip Credit

[26:45–31:10]

• Sources:
  • Accurate daily tip reporting (via POS and tip-out systems).
  • Quarterly Form 941 (employer’s quarterly federal tax return).
  • Yearly Forms W-2 and W-3 (employee wage and tax statements).
• Model Tools:
  • Specialized systems (e.g., Kickfin, Toast) improve tracking, consistency, and provide data integrity.

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8. Contractors vs. Employees

[30:21–31:42]

• Important distinction: Contractors (1099) do not qualify for the tip credit; only employees (W-2) do.
• Increasing gig work: As gig economy rises, clear contracts are required; IRS rules on classification are strict.
• Joshua: “If I’m telling this individual how to do, when to do, what to do, then it’s no longer a contractor.” (31:34)

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9. Entity Structure & Tax Strategy: Why It Matters for the FICA Tip Credit Policy

[31:51–49:45]

• Entity Types Discussed:

  • LLC (Single-member): Flows through to personal tax return (1040).
  • S Corp (1120S): Separate return, passes income and credits to shareholders via K1.
  • Partnership (1065): Similar flow-through as S Corp, but partners pay self-employment tax.
  • C Corp (1120): The credit stays within the company (doesn’t pass through); subject to double taxation, but may benefit from a flat corporate tax rate on large earnings.

• Joshua’s General Tips:

  • “If I can avoid [self-employment tax], I’d rather be the 1120S.” (38:03)
  • Choose S-Corp generally if net income is over $300K.
  • C Corps are most attractive at very high revenue levels due to flat taxes, but caution with double-taxation risk.
  • On the tip credit: “On 1120 C, the FICA tip credit stays within that company…1120s or 1065, it trickles down to the individual, the owner.” (47:13)

• Tip for Owners:

  • Regularly check K-1 (look for box 15: credits) on returns to ensure your CPA is applying the FICA tip credit.

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10. Planning Opportunities & Compliance

[52:03–53:28]

• Action Steps:
  • Regularly review returns for the credit—amend if missed (limit: past 3 years).
  • Review POS and payroll, educate all parties (and yourself).
  • Segregate and distinguish tips from mandatory service charges at every step.
• Compliance: Avoid claiming ineligible credits (e.g., including GRAT as tips).
• Strategy: Stay updated on legislative changes; choose the right entity for your growth stage.

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11. Future of Tipping, Business Models, and The Role of Specialists

[54:23–56:32]

• No ‘one-size-fits-all’: Optimal entity structure depends on size, partners, ownership, and growth phase.
• Joshua: “Every scenario should be treated differently with an appropriate lens. I don’t think one blanket fits all.” (54:40)
• The tech and expertise are more available than ever (even for smaller operators) and having a restaurant-focused financial specialist is increasingly critical.

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Notable Quotes & Memorable Moments

• On the critical difference:
  Chris: “Is tip credit and FICA tip credit two totally different things?”
  Joshua: “Two total different things.” (06:59)

• On POS/Payroll Integration:
  Joshua: “If I mix and mingle, then I’m going to be putting GRAT into this credit that I don’t qualify for.” (16:58)

• On getting specialist support:
  Chris: “Why go to a financial service that specializes in the restaurant industry? ... If you’re a specialist and you understand the uniqueness of the restaurant industry, then you’re going to catch these little opportunities.” (10:34)

• On regular missed opportunities:
  Joshua: “...you’re putting money on the table. You’re not taking it.” (23:26)

• On documentation:
  Joshua: “...the payroll software...it’s only a tool, right? But the person utilizing the tool needs to make sure they’re using the tool correctly.” (26:42)

• On entity choice and the FICA credit:
  Joshua: “On 1120 C, the FICA tip credit files, it’s going to stay within that company...versus 1065 and 1120s...it trickles down to the individual.” (47:13)

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Key Timestamps

• 04:45 – Joshua’s Success Mantra (“Don’t be afraid to give up the good to go for the great.”)
• 05:53 – What is the FICA tip credit and why most restaurateurs miss it.
• 07:01 – The difference between wage tip credit and FICA tip credit.
• 14:33 – How the FICA tip credit actually works.
• 16:11 – Common mistakes (GRAT/service charge vs. tips).
• 26:51 – Required documentation for claiming the credit.
• 31:51 – Entity structure and tax strategy explained.
• 47:13 – How entity type affects where the credit is claimed.
• 52:03 – Planning, compliance, and action steps.

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Takeaways for Restaurateurs

• Always verify: Check if your CPA is actively applying the FICA tip credit—most generalists overlook it.
• Be proactive: Review past returns (up to 3 years) and amend if needed.
• Get your systems right: Insist on separate tip and GRAT reporting at both the POS and payroll/HRIS level.
• Choose the right structure: S-Corp (1120S) is optimal for most growing restaurants, but review as you scale.
• Hire specialists: Seek finance professionals who truly know the restaurant space.

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Resources & Contact

• Cerboni Services: [Joshua Santana – [e-mail]], located in Houston, TX, supporting restaurants nationwide via digital platforms.
• Show notes and resources: RestaurantUnstoppable.com

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This episode is a must-listen for any restaurant owner looking to maximize savings, stay compliant, and future-proof their financial operations. Joshua Santana’s expertise bridges the often-overlooked gap between tax compliance and operational profit for hospitality businesses.

Transcript

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[Chris]

Allow me to introduce you back on.

[Jason]

The show for a second time, co.

[Chris]

Founder of Cerboni Services, Joshua Santana. My man, are you feeling unstoppable today?

[Joshua Santana]

Unstoppable today.

[Chris]

Stoked to have you here. I love my first conversation with you and your co founder Maria. You guys are awesome. Today I'm back in Houston and we're gonna be going deep into the world of tip credits, understanding tip credits in restaurants today. Before we unpackage that, let's get that motivational inspirational ball rolling with a success quote or mantra. What do you got for us?

[Joshua Santana]

Yes, it's don't be afraid to give up the good to go for the great.

[Chris]

Don't be afraid to give up the good to go for the great. And I cut you short. By who?

[Joshua Santana]

By John D. Rockefeller.

[Chris]

He's a good one, huh? Why did you choose that today?

[Joshua Santana]

Oh, I think a lot of times people get comfortable on the position that they're in and they think it's smooth sailing, it's going great, but they can do better.

[Chris]

Yeah.

[Joshua Santana]

And I think just in essence, what we provide, it's that next step that next better, you know, for you to.

[Chris]

Do the next thing.

[Joshua Santana]

To do the next thing.

[Chris]

Yeah. I can't help but think of just this mindset. If you, if you settle for good and whatever good was five years ago, 10 years ago, isn't going to be good enough today because the world is going to be advancing around you. So you, you have to constantly be a better version of yourself today than yesterday. So great way to get this thing started. And hopefully by the end of today, our listeners are going to be a little bit better because they're going to understand the opportunities with these tip credits. So, you know, bringing you back on the show, I said, what do you want to talk about? Like, what do you think my listeners need to hear? And you chose this subject of understanding tip credits. Why do you think this is so important?

[Joshua Santana]

I think this is a credit that a lot of restaurateurs aren't taking advantage of. I think it's, since it's such a niche part and a niche credit, a lot of tax preparers, a lot of accountants aren't aware of it. So then it's, I see multiple times, many times when we get a new client and I take a look at their tax return, they're not utilizing it, they're not getting this credit, and it's something that's going to be able to give them and pay less federal income tax.

[Chris]

Why do, why is this off people's radar? Like, why is it. They're aware of it, but they just don't know where to start or like what's going on there.

[Joshua Santana]

So I believe it can be a little bit of confusing of both because when I heard about to tip credit and how people individual interpret it, it's how to increase to that minimum wage. You know, there's a tip credit that you can fulfill by paying tips in order to reach minimum wage. You know, it's that filler. But then there's also the tip credit that we're going to talk about today about the FICA tip credit, which allows the restaurateurs to be able to get some of this money back that they paid into the government.

[Chris]

So is tip credit and FICA tip credit two totally different things?

[Joshua Santana]

Two total different things.

[Chris]

What are those differences?

[Joshua Santana]

The differences. One, I'm using tips to pay my employees to reach minimum wage. And the FICA tip credit is I'm actually going to get credit back from the government when I file my tax return and reduce my tax liability.

[Jason]

Okay, so where do we start?

[Chris]

Like, if we want to fully comprehend this. So, like, take me to that starting point.

[Joshua Santana]

Yeah. So I think in, in essence, we start where this applies to mainly restaurateurs we apply this to the hospitality industry, industries that receive and pay tips. I think as well as this applies to an industry that needs as much credits, as much deductions as possible.

[Chris]

Right.

[Joshua Santana]

So we want to be able to take advantage of this. And if we're not, then we're leaving money on the table.

[Chris]

How long has this tip credit even been around for available?

[Joshua Santana]

It's been around quite some time. 10 plus years.

[Chris]

And how long have like what percentage of people have you had a guess? Restaurateur is actually ticket van.

[Joshua Santana]

I'd say it'd be 50. 50, 50, 50.

[Chris]

That's like kind of hard to believe. Like, why don't you think people are aware of this?

[Joshua Santana]

I think a big part of is it's confusion. You know, as we mentioned in the beginning, there's the tip credit and then there's a FICA tip credit. And a lot of times it gets mixed together so they think they're taking it, but in reality they're not taking it because it's two complete different things.

[Chris]

And I know you already, I already asked, but can you just explain one more time the difference between tip credit and FICA tip?

[Joshua Santana]

So the tip credit is servers usually get paid $2.15, $2.25, and in order to reach minimum wage, we have the tips to bring that up. So we utilize tips to not have our employees just get paid that minimum amount and it goes up to the $7.25, which is minimum wage.

[Chris]

Got it.

[Joshua Santana]

And the FICA tip credit is employees get paid in tips and the employer has to pay taxes on that money. I'm able to get a percentage of that back on my return. So it's one has to deal with minimum wage and the other is I'm actually going to be able to benefit and pay less on my tax return.

[Chris]

And why did the government issue this ability to have a FICA tip credit? What was the incentive there?

[Joshua Santana]

The incentive is that not necessarily it's going to be the responsibility of the owner, right. To be paying tax on tips. Because tips isn't given by the restaurateur, isn't given by the owner, it's given by the consumer, the individual that's going to go to the restaurant and freely give a tip. So the government in essence said, oh, well, they shouldn't be responsible for paying all the taxes, which is in Social Security and Medicare. We're going to be able to reduce this amount and give back a portion back to the restaurant or to the owner.

[Chris]

Okay, got it. When people aren't leveraging the fica. What do you think is going on there? Is it just because they're not like, are they are like many of the people who are like, say, the 50% who aren't leveraging it, are they aware of it, but just don't know how to.

[Joshua Santana]

So I think this is going to be on. On our end, right on the person preparing the return and also making sure you're asking the right questions whenever you do file your return. I think a lot of times restaurateurs, owners, business owners rely heavily on their prepare, which. Which is correct. So. Right. Because I'm paying someone, I'm relying on their knowledge that they know the tax law, they know the credits, that I'm going to be able to utilize and gain. But there's a lot of times where maybe they don't know or you're not asking the right questions to get this credit.

[Chris]

Right. I think that kind of goes back to our first conversation when I had you and Maria on the show together. And it's just like, why go to a financial service that specializes in the restaurant industry? Because if you go to your typical CPA for your taxes, they might not be aware with all the little details of the restaurant, the restaurant industry, they might not be bringing you all the opportunities to save. But if you're a specialist and you understand the uniqueness of the restaurant industry, then you're going to catch these little opportunities. Nothing's going to get by you for sure.

[Joshua Santana]

I think because we specialize or having a specialized tax preparer accountant is going to benefit you a great deal. Maybe you're overpaying when you can be paying less. And I also like to keep in mind that this credit, you don't lose it. Right. It's not something. If you didn't use it, it's gone. It's something that you can also amend your return that you're able to retroactively do for the past three years, not more than that. And it can always roll over. So let's say you didn't fully use it in year one. It'll roll over to year two. Until the next 20 years, you're able to utilize this credit as a rollover.

[Chris]

Got it. So I have a list of talking points right here in front of me. And I think for the sake of transparency, I'm just going to stick to these talking points because this is a. This is wild, wild west for me. You know, I want to make sure we get everything out that you think is important to discuss. So the first Thing that we have on our list here is the FICA tip credit key concept. Is there anything that hasn't come out of today's conversation or is that a good place to start?

[Joshua Santana]

Yeah. So I would say the key concept is going to be knowing that you're going to be able to utilize this credit. This credit for me is going to be something that you should always keep in mind and also keep track of. How do you keep track of this? And how do you know what to give to your tax preparer, to your accountant so that you're able to utilize these, these credits? It's one is going to be for sure making sure that you report and have a system in place of how much tips are being paid out to your servers, to your busers, to your bartenders, so that whenever you do file your tax return, you're able to have this information to be able to give to the preparer to be able to get the credit.

[Chris]

Got it.

[Joshua Santana]

Because if you don't keep good recordkeeping, you're not going to know how much you're going to be able to apply for.

[Chris]

And I'm sure we're unpackage that in the documentation required for FICO tip credit. Is that safe to say?

[Joshua Santana]

Yeah.

[Chris]

Okay. I just want to make sure we're not getting ahead of ourselves. What else do we need to know in terms of key concepts?

[Joshua Santana]

I would say record keeping is going to be super important.

[Chris]

Okay.

[Joshua Santana]

Having the proper clock in, clock out, having the proper system in place to be able to know how much credits. I think a lot of it's going to be heavy on the payroll that you utilize, the payroll provider that you're going to use. And whenever you run and process payroll, it's going to be allocated appropriately.

[Chris]

Okay. Do you think that comes out more later in the conversation with documentation?

[Joshua Santana]

For sure.

[Chris]

Okay, we'll hold off. I have questions, but I'll. I'll save them. Anything else you want to unpackage relative to just the key concepts of tip.

[Joshua Santana]

Credit, I would say no.

[Chris]

So let's go right into who qualifies for the FICA tip. So who are those people?

[Joshua Santana]

The restaurateurs, bartenders, servers. It's gonna be any industry that receives and payout tips.

[Chris]

Okay. So it's not just limited to the restaurant industry. It could be like massage therapies, like we tip masseuse. Right.

[Joshua Santana]

So I think a big importance is a lot of times it's gonna need to be reported. Right. Which could also bring us to the conversation of the tip, the big, beautiful bill that was passed and with the tip credit not being taxed on the first 25,000. So, yes, it's going to be on any industry that receives tips. You know, I know a big of our market right now is going to be on bars, restaurant tours, and so forth, but it's any individual that's going to be able to receive tips.

[Chris]

How the tip FICA tip credit actually works. Like get into that meat.

[Joshua Santana]

Yeah. So how it works is I'm going to be able to get information as a preparer on how much tips each individual gets paid. So an example, if server one gets paid in tips for the year, 25,000 per se, I need to know how much that individual gets paid as well as how much tips they receive so that I'm able to lump everyone together and know how much credit I'm able to qualify for.

[Chris]

So you're documenting the actual wage and the tip and that's what you're looking for? Yes, got it. Anything else relative to that, that header there of the how that like a tip credit actually works?

[Joshua Santana]

So everything else is going to be a percentage, right? Because it's going to be anything above $7.25, which is federal minimum wage. So it's not like, like mentioned prior in the conversation. It's not 100%. It's going to be anything above the federal minimum wage. So what does that mean? That means if I'm paying someone $7.25 and then I'm going to tip them or they receive tips, it's going to be anything above that tip.

[Chris]

Got it. So you would, you would retract or subtract the total $7.25, whatever it is, for the year, whatever that number is, you would subtract that from the total and that's the number you would use.

[Joshua Santana]

So I would. Yeah. In essence, it's the baseline, we'll say.

[Chris]

Got it. Now, do we get into like the common mistakes that reduce or eliminate tip credit?

[Joshua Santana]

Okay, so I believe the most common mistake that I've noticed is they take in consideration GRAT and GRAT and tips are two separate things. They're viewed differently. And GRAT does not apply or qualify for the tip credit.

[Chris]

So you're talking about if you have a line item, like on the bill, like we charge 20% for services that does not get included.

[Joshua Santana]

Correct. So it's like a service charge. It's I'm obligated to pay versus I'm willing to pay on my own. So tips, I'm able to get a tip credit versus grat. You are not. And it's super important always have them separated. Because if I mix and mingle, then I'm going to be putting GRAT into this credit that I don't qualify for.

[Chris]

Okay. Now, do you. When you are working with your clients, how many of your clients use gratuity service charges?

[Joshua Santana]

So I would say usually it's going to be big parties, right?

[Chris]

Eight or more or whatever.

[Joshua Santana]

Eight or more.

[Chris]

Yeah.

[Joshua Santana]

Right. Which makes sense. Right. But I need to make sure that they're having a separate line item for this grat and not just put it under all tips.

[Chris]

Okay.

[Joshua Santana]

A lot of times, you know, there's. They split tips differently. We need to make sure that GRAT isn't included in the tips.

[Chris]

Got it. With certain technology. I know you guys are experts on a multitude of different technologies for the restaurant industry, so maybe you can answer this question with systems like toast. Is this an automated feature? If there's a table of eight, will it automatically do that? Is this something that we need to train our staff to say, make sure you touch the code, the gratitude button, for sure. I also think, where's that technology?

[Joshua Santana]

It's two types of technology that I would say we need strong for sure having strong POS and for sure having the line item for grat. For sure having the line item for tips, but as well as having a good payroll provider. Because if I can align and separate everything on my pos, making sure that it's separated, but in the end, when I'm putting it into my payroll provider, they just lump it all together, then all that work in the beginning makes no difference in the end.

[Chris]

So you can track it on the pos, but once that information moves over to the payroll provider, then this is going to get lost. Like, they'll just lump it back together again.

[Joshua Santana]

Yeah, a lot of times they just lump it back because they, the payroll provider, whoever's running their payroll think it's one in the same, and it's not.

[Chris]

Okay, so it's. It's. Everyone along the entire chain needs to be educated on how this works. So are there payroll provide? Like what. How do you. What is your advice for approaching the payroll and saying, hey, are you doing this right?

[Joshua Santana]

So first, making sure that on my pos, I have those. Those two. Those two buttons, Right. Making sure I have tips, making sure I have grant, and then also making sure on the pay stub or making sure on my payroll provider that I also have those two line items. And it's really easy to check one. I just take a look at my pat last pay stub. If I had grant or just going into the system in itself saying oh, I have grant separated from my tips, I would say that's the easiest and best way.

[Jason]

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[Chris]

Those things you should outsource.

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[Chris]

I hate to put you on the spot here. I mean, but I'm always just so curious about, like, who's out there that you.

[Jason]

Like.

[Chris]

Like when you pull on a new client and you're looking at their tech stack and you're like, how easy is this going to be? Or how hard is this going to be based on the technology and the services they're working with? What companies do you get excited about in terms of, like, oh, you. You know, that this payroll provider is going to have their stuff together. Like, what companies are those for the restaurant industry?

[Joshua Santana]

Yeah. So in my mind, it's all about the person utilizing it. Right.

[Chris]

Okay.

[Joshua Santana]

I think all these payroll providers have the tools. Right. It's just being able to utilize the.

[Chris]

Tools correctly and communicating to the payroll provider, like, I need these features turned on.

[Joshua Santana]

Correct. Correct a hundred percent. Because ADP is going to have it. Gusto is going to have it. Toast Payroll is going to have it. They all have the capability to do it. Is just being able to implement this, this tool in order to be able to have the correct information in order to have the correct outcome.

[Chris]

Got it. So the headline that we're on right now is the common mistakes that reduce or eliminate tip credits. And we talked about just taking into consideration gratitude and treating gratitude in tips as separate line items and making sure that all of your integrations up the payroll are also accounting for that.

[Joshua Santana]

What.

[Jason]

What else?

[Joshua Santana]

So I would say actually knowing about it. Right. I think that's a good one. In the essence of it being. Not. It being not calculated correctly is the grant and tip, another one is not knowing it at all, or the person preparing doesn't know about it all that I'm just losing.

[Chris]

So when you say 50. 50 people are taking advantage of this in the restaurant industry, when you pull on new clients, like, are you saying 50% of the people that you have as new clients were never leveraging?

[Joshua Santana]

Yes, I take a look and I see they're not utilizing. First thing I tell them, hey, you're miss. You're putting money on the table. You're not taking it.

[Chris]

So, like, that's a higher percentage than I would have thought, if I'm being honest. And like, on average, like, say somebody who has three units and they're averaging 1.5 million a year per location, we're looking at like 45 or 4.5 million approximate. Like, I know no two restaurants are exactly the same, but, like, how much savings is that?

[Joshua Santana]

Oh, I'd say it's a ton. An example, we had a client that didn't use it at all and they, their restaurant I think was running around 10, 10 million annually. Oh wow. It's tremendous. And it was per. And they didn't use it for the last three years. And keep in mind we're able to amend the returns per year they got in credit per year.

[Chris]

Three years back.

[Joshua Santana]

Three years back. Each year around 50,000.

[Chris]

Wow. And that all goes to profit.

[Joshua Santana]

So what it does, it is a credit. Right. So it reduces your tax liability. So what does that mean? That means if I'm paying zero federal income tax, it's not going to move the needle. It's if I owe then it's going to move and decrease the amount I owe.

[Chris]

So if you, if they owed in 2025, when you did their 2024, when you did your taxes, you could have pulled $150,000, correct? That's correct.

[Joshua Santana]

And so then they get this money back because they paid into it. Now if we're doing Fresh Start, you know, we're doing the return now and they have zero tax liability and they get the credit, then it just gets rolled over to the following year. Right. Or if the restaurant has a loss and they pay zero in taxes, then it just gets rolled over to the following year until there's a gain so it can go rollover for the next 20 years.

[Chris]

Got it. So relative to common mistakes that reduce or eliminate the credit, we talked about taking in consideration the gratitude and having separate line items. We talked about having a good payroll provider that is able to also treat this as a separate line item. Then you just mentioned just simply being aware of it. Anything else relative to just the mistakes that reduce your ability to leverage this.

[Joshua Santana]

Credit, I think those are the top two. But another one I think is just having the knowledge of where to look for it. I think we're going to get into that a little bit later in our conversation on structure and because it's going to be a little bit different on where we're going to look and how we're going to find it. But in the end it's going to affect the owners 1040 personal return. It goes all the way down to the bottom.

[Chris]

Got it. So I think we're at a good spot just to move right into documentation now. Right. Unless there's anything else relative to mistakes you want to share?

[Joshua Santana]

No, not, not in mistakes. I think we covered main key points regarding mistakes and being able to see the process one it for sure being tips. The difference between GRAT and TIPS where grant is not going to be eligible. And tips are. And utilizing a good payroll software and having someone who is running your processing your payroll being able to know how to utilize it as well. Because I think it's. It's also a human thing. The, the payroll software, such as adp, Gusto, Toast Payroll, it's only a tool, right? But the person utilizing the tool needs to make sure they're using the tool correctly.

[Chris]

Got it. Like any tool, right?

[Joshua Santana]

Like any tool.

[Chris]

So documentation required for the FICA TIP credit. Let's get into that documentation. What do we need?

[Joshua Santana]

So for sure, we're going to need to know how much tips. How much tips is being paid, which is going to be provided by the pos, which is also we're going to be given to the payroll software. So on documentation, for sure, we need to make sure the 941s are reported correctly. The W2s are reported correctly along with the W3s, which are quarterly and annual filing forms. The 941 is filed every quarter, and the W2, W3 is filed annually. So on these documentations, they're going to split out how much in tips is being paid. So those documentations are going to be super important because this is what's going to be turned into Social Security as well as the Internal Revenue Service.

[Chris]

Okay, so again, that document, W2, W3, what else?

[Joshua Santana]

941, 941s.

[Chris]

And are those contract workers?

[Joshua Santana]

These are all employees.

[Chris]

So those are all employees. What's the difference between the W2, W3.

[Joshua Santana]

And so the W2 is what an employee gets at year end. You know, they get their W2 form, they take it to their tax filer and file their taxes. The W3 is basically the sum of all the W2s that were generated. And the 941 is basically the. The amount of taxes being paid. And it's a form sent out quarterly because, you know, whenever you run payroll, you have to pay the taxes quarterly.

[Chris]

Yeah, got it. So you're documenting this or. We're documenting this. You mentioned also the importance of this clocking in, clocking out. And I know there's tools today that help us with like cashing out tips. Are those good tools to adopt when just trying to generate, really track tips? Because it's a part like that, the tracking of those tips. I mean, there's like. Was it kickfin is one of them? I think there's other like those. I mean, I know there's more. That's the first one that comes to mind is davo another one or so.

[Joshua Santana]

I know, I know. Toast. Toast. I know you mentioned toast. Toast has one as well to track tips. And it's the benefit of those is going to be able to track them correctly. Right. Being able to one allocate it to the appropriate person. Right. To allocate them that it is a tip and not a grat. I think these softwares is going to be able to help each server bartender know how much they're receiving when they get paid.

[Chris]

I mean, it's a good excuse to invest in the technology to make this stuff easier. Whether today, if you're not using a labor management tool, you know, like that just takes so much load off of your manager's shoulders, your shoulders. And if you can then also be able to get better data to, you know, get your clock in, your clock out, do total out. Like when you have all this stuff kind of tied together. I can only imagine trying to do this by yourself. Like 20 years, you know, before all the technology was there and a lot of these people, before all the like the specialists were out there. Like only the, the biggest restaurant groups could really afford to have specialists, restaurant industry consultants. But it's so abundant today, you know, finding people like yourself, sir, bony in in conjunction with all this technologies that that's out there and getting into coaching and how to use the tool to your point correctly so you're maximizing, I think is just really important. So we covered W2s, W3s, 109s and four 941s.

[Joshua Santana]

Yeah. 941s. Yes.

[Chris]

Anything else? Whether relative to documentation.

[Joshua Santana]

I know you had mentioned contractors. So just just to put out there, contractors do not qualify.

[Chris]

Okay.

[Joshua Santana]

Because contractors, they get a 1099. They're responsible for their own taxes. So they're not employees.

[Chris]

Which is important because the gig economy is on the rise right now. There's a lot of services bubbling up where you can go work in the restaurant, you can pick up shifts. But I think Pear is one of them or I can't remember, I've had some of these on. I don't know if they ever got off the ground. But I think that with more gig economy stuff, you really have to be.

[Joshua Santana]

You know, mindful of that and just putting there. I think it's also super important to be careful. Right. Making sure whenever you pay A contractor A 1099 versus A W2 is knowing the difference. Right. Because it sometimes can be a very thin line having a gig 100% the guy comes in or male or female Whoever comes in and they just do a particular part of the job and then they leave. Great. I would always recommend to have some sort of contract making sure that things are aligned on their job and what they should do. But as well as if I'm telling this individual how to do, when to do, what to do, then it's no longer going to be a contractor. Now we're swaying a little bit more of this individual being an employee.

[Chris]

Got it, Got it. Okay. So moving on to entity structure in tax strategy. I know this is a big part of the conversation that you're looking forward.

[Joshua Santana]

To, so I think this is always top question that I always hear is what is an LLC? What is a 1065? What is an 1120s, what 1120 C, which one should I choose? And I think this also relays to how the credit, the credit is applied. So whenever I have a flow through entity such as 1120s or 1065, it's always going to appear on my K1. And on the K1 it's going to have a box that says credits that for you should be your first place to go. If you file an 1120 as 1065 to see if you're getting the credit, I would go to the K1, see if I have this box filled out. If it is, probably you're getting it. If it's not, then the already that's a red flag that you're not getting any of this tip credit.

[Chris]

So if we're building a business today, what advice you have? Like, is there a business entity that you prefer? I know a lot of people go towards the direction of LLC for liability reasons, but I've also heard that S. Corps or different types, I mean what are they?

[Joshua Santana]

So I would say llc. Single member LLC is basically an individual incorporating into an llc. Right. I think the confusion is an LLC is only a. It's a vehicle that allows you to choose how to. You can choose how to file. Right. It's not necessarily something that's going to lock you in. Whenever you file for an llc, more than likely you start off as a single member LLC and if you make an election to file differently, you are able to. So a single member LLC is basically you're an LLC and you're able to file in your personal tax return this llc. So I always like to give an example of. Imagine a book. In my book, I'm going to have my stocks, I'm going to have my real estate, I'm going to have my llc. They're going to be chapters in My book that I'm able to file. So that's simple.

[Chris]

So this book is your portfolio.

[Joshua Santana]

This book is your portfolio, is basically your 1040 and the return that you're going to file at year end. So an LLC is giving you the limited liability and protection. Right. But it's going to be filed within your tax return. Now, as we grow, as we progress, I always like to give the options of having 1120s. And that's an S corp. That is an S Corp. So an 1120s. The S Corp is a separate entity I'm electing and letting IRS know that I'm going to file with an S corporation. Now in this one, there are little specific rules that differentiate as a single member llc. And the big differentiator is I'm going to have to file a separate tax return. In this separate tax return, the 1,120s pays zero in federal income tax. So it pays nothing. What it does is it issues a K1 and this K1 has all the income, has the net, has the credits that we're discussing today. And you would put this into your personal tax return into the 1040. It'll be a chapter in the 1040. And so then it flows, it's a flow through entity.

[Chris]

Got it. And that would, would it be listed the same place the LLC would.

[Joshua Santana]

Ah, so the credit for the tip credit, if I was just a single member llc, it would be different. So I'm going to directly put the credit into my tax return versus getting a K1 and on the K1 it's going to have the credit in itself.

[Chris]

And a K1 is a quarterly.

[Joshua Santana]

K1 is going to be an annual, an annual form that I would receive when I file my 1120s.

[Chris]

Got it. I mean clearly not an expert me in this subject. So I appreciate you letting me ask all these additional questions. Never afraid to look silly trying to have an audience.

[Joshua Santana]

I think it's super important also to know the difference between the single member LLC and an 1120s and why people choose it. Because I think a lot of times they hear, oh, I'm going to get more deductions or I'm able to do a little bit more additional things with an 1120s, which is true, you can. And the main difference is I'm going to be able to pay myself as an employee. So versus on a single member llc, I don't pay myself as an employee. I'm basically take draws. When I owners pay, owners pay. When I'm in 1120s, I have to pay myself a reasonable salary. And when I pay myself a reasonable salary. The company is going to pay half of my Social Security, half of my medicare and I'm putting more into it versus a single member LLC where I'm paying 100% of it.

[Chris]

Got it. At what point you start your first restaurant, you're a sole proprietor, you're a single member llc, you're taking draws, you're paying yourself. Whether you know you're using profit first or whatever cash flow management system. At what point as you're growing and as you're scaling, do you advise people to go from a single LLC individual to an S corp?

[Joshua Santana]

So I always like to use the number roughly around $300,000 annual.

[Chris]

Okay.

[Joshua Santana]

I think that gives you the opportunity to go to the next step as doing.

[Chris]

It's a pretty low bar for a lot of restaurants to get over. It is, yeah.

[Joshua Santana]

So I think it's maybe from. Even from the get go, unless you're very small, maybe from the get go you automatically get an 1120s. Now we can go also to the 1065. A partnership. Why not a partnership versus an S corporation In a partnership the downside in my opinion is I'm going to have to pay self employment tax whenever I get that K1. So similar to the 1120s, the 1,065 is also a flow through entity. Meaning the 1065 pays zero income tax. It's going to be the partners that pay the tax and how they pay the taxes by getting this K1. But when I get this K1 and it gets dished out to me as an individual, I have to pay self employment tax on it which if I can avoid, I'd rather be the 1120s.

[Chris]

So after your partner submen tax and that's all through when you know what your income is after your taxes are being done, that's the number that is.

[Joshua Santana]

Basically taxed that I'm gonna have to pay tax on. And another in my opinion downfall is I cannot pay myself a wage where I get a W2. I'm gonna have to pay myself as a guaranteed payment which I also have to pay self employment tax on which if I can avoid, I rather avoid now. Why do people do partnerships versus S corporations? When I just mentioned oh I got to pay self employment tax. Right.

[Chris]

So an S corporation in a partnership.

[Joshua Santana]

Is a 1065 S. So just 1065.

[Chris]

1065.

[Joshua Santana]

Okay. And an S corporation is an 1120s.

[Chris]

Okay.

[Joshua Santana]

11.

[Chris]

Let me make these notes. 1120s, it's a lot of 1120 S. Is an S corp in a 1065 is partnerships. Yes, got it.

[Joshua Santana]

And so then you might be thinking, well wouldn't be common sense. I just do an 1120s and not a 1065. Well, the reason why is on 1120s it needs to be owned by individuals versus a partnership. It can be owned by anybody, by LLCs, by another LLC, by a C corp, by another. Another LLC. Correct.

[Chris]

So what's the, the benefit in that?

[Joshua Santana]

So the benefit in that is going.

[Chris]

To be creating shell companies.

[Joshua Santana]

I would say it's going to be flowed down to another entity. Well then I might not have to pay that self employment tax.

[Chris]

Okay, got it. So we covered LLCs, we covered S Corps, 10, 1120s and we just talked about 1065.

[Joshua Santana]

Yes.

[Chris]

We haven't talked about C Corps yet.

[Joshua Santana]

C Corps. So on a C corporation, the big, I would say the big deal that people make is that it has double taxation. So you do pay double tax whenever you receive a dividend. Whenever you receive a dividend from a C corporation, it's taxed twice. And what does that mean? You're going to be taxed on it on a personal level and you're going to be taxed on it on the 1120 C level. And how is that possible? Meaning I'm not able to write off this dividend. It stays within the 1120C. So then I have to pay tax on. And then when I receive the money on my personal tax return, I'm going to have to pay tax on it as well. So it's being taxed twice. Now what do people like about it? The great thing about it is that it has a flat tax rate. So if you make a billion dollars or I make a million dollars, I'm only going to have to pay a flat tax rate. It doesn't go up or down versus the others. It does, it fluctuates depending upon your revenue.

[Chris]

So if you're doing hundreds of millions of dollars of revenue, then that's the incentive. They move to a C corp because it stays fixed. Yes, got it.

[Joshua Santana]

I just, what you said is what I agree with. If I'm making 25 million, 35 million, then maybe this is going to be an option to take. But if I'm making something less, not so much. It's not going to provide the benefit because your double taxation, double taxation and probably your rate when you're filing your tax is going to be less your.

[Chris]

Rate when you're filing as a, as.

[Joshua Santana]

A, an S or less.

[Chris]

Because probably less work. I mean I would imagine with the C corp. Like this is. I'm totally ignorant of this.

[Joshua Santana]

So it's not necessarily on. The work is just the taxable rate that you're going to pay, right? Because on a C corp we have a flat tax rate, right? On an individual, it's a sliding scale. Most of the time on this sliding scale, I'm going to pay less. I'm not going to be at the higher level, 32, 33%. I'm going to be more in the 20s, 22% tax rate. And what is a tax rate? A tax rate is if I'm making a dollar, I'm going to be paying zero tax versus there's scale, you know, zero, 10, 20 and so forth. You know, depending upon my income level.

[Chris]

Got it?

[Jason]

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[Chris]

You got to hear what Jason had.

[Jason]

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[Chris]

And not to get even more into the weeds, but I remember during COVID people who were filed as S Corps were able to benefit from the ppp and like they, they were because they are, they were an employee. They're basically getting a paycheck, right? Yeah, they were able to get, I think, file for unemployment. Isn't that what they did?

[Joshua Santana]

You can file for employment because you're paying yourself a wage, you know, but also on the PP side, PPP side, you are also able to benefit from because you were an employee, right? Yeah.

[Chris]

So that's another layer of security that an S Corp offers.

[Joshua Santana]

So I would say benefit, not necessarily a security because you're kind of the owner. Right. So if you ever want to put unemployment on your own company, you can. Or if you, if something like Covid does happen, you're able to get something because of your pay, which is great. So I would say it's, it can be a benefit.

[Chris]

Okay, got it. So relative to entity structure and tax strategy, why entity choice or what entity choices matter and why entity choices matter. We talked about LLC individual s corp 10 or sorry, s corp 1120s. We talked about 1065. So we talked about C Corps. Anything to unpackage under that header of entity structure and tax strategy that we haven't touched on.

[Joshua Santana]

I would say recap a little bit of what we discussed, little bit on, you know, the difference between C Corp and Y and between the 1120s and the 1065 A C Corp. In my mind, it's when you're making more higher revenue. I always like the 1065, 1120s because you don't pay any tax. It's going to be flowed down to the individual. And it does great. When I have multiple partners or multiple members within the company. An example, if the company profited $100,000 and I have four partners, then I'm going to get a K1 for 25,000 each. Then I'm not paying tax on the full hundred. Right. Because I have members or partners that will be splitted amongst them, you know.

[Chris]

Okay, so back to the FICO tip credit. Did we tie in why that matters relative to each one of these.

[Joshua Santana]

So on 1120 C, the FICA tip credit files, it's going to stay within that company because it's not a flow through entity. It's its own entity and it pays its own tax. The credit will stay there. So an 1120 C pays its own tax what does that mean? It means if I made a million and my profit is 100,000 and my tax is going to be 22,000, then the company is responsible for paying that and then the tip credit will go into that calculation. So it stays within that ecosystem versus 1065 and 1120s. It does not stay in that ecosystem. It trickles down to the individual, the owner itself. So then the individual, the owner gets to take this credit.

[Chris]

Okay.

[Joshua Santana]

So that's the difference between where the credit is taken. One stays in its own ecosystem, the 1120 C and the 1065 and 1120s. It gets trickled down to the owner and they're able to utilize it.

[Chris]

And you think that it's the 1120s that's the better option because you want it to stick with the company, not the individual.

[Joshua Santana]

So I like 1120s in the aspect of if one it's owned by an individual, I'm going to be able to pay myself a salary. I'm also going to be able to take this credit because when I file my personal return, I'm going to have a line item that shows the tip credit there.

[Chris]

Got it? This is why we go to the specialists. It can get very convoluted. I'm doing my best to stick with you, but I, I, I know you, you know what you're talking about. But I think it makes sense to me. But I am, this is not my area of expertise.

[Joshua Santana]

Yeah.

[Chris]

So common entity types, we covered that pretty deep. Cheap. We went into LLCs versus S Corps versus C Corps. That was next on our list. But I feel like we got that out pretty good. So the next thing we have to talk about relative to FICA TIP credit is how entity structure impacts the FICA TIP credit.

[Joshua Santana]

Yeah. So I think we touched base a little bit about that.

[Chris]

Right.

[Joshua Santana]

Just on how that credit is going to be taken advantage of and on the C Corp is going to be taking of advantage advantage in its own ecosystem's own return versus the other two is going to be shown on the 1040, the tax return that you file year end. I think it's super important to know that we got two types of entities that trickle down to the individual. It's a flow through entity which is a 1065 and 1120s that when I file my personal tax return it's going to appear there. So just, just an example. On the tip credit it's going to be calculated, it's going to be shown on the 1120s on the 1065, on the K1 in a box called credits so if you look at your K1, for businesses that have 1065 and 1120s, there's going to be a box that says credits. That credit is going to go directly to the owner tax return and then when they file their personal tax return, they're going to be able to utilize this credit to pay less in tax.

[Chris]

Okay.

[Joshua Santana]

So it's like a trickling effect. Right. It starts from the top and then goes trickles all the way to your 1040, which is your individual return.

[Chris]

I feel the need to like google search k1 and to see what it looks like to see that. I want to see the actual box that you're talking about isn't in the bottom right hand corner.

[Joshua Santana]

It's going to be on the right. So it's going to be called 15.

[Jason]

Yes.

[Chris]

Yep. Credits. Okay, I see right there. This is done annually.

[Joshua Santana]

This is done annually. Yes, got it. But the work is done throughout the year. Right. Because we're paying or the employees are receiving tips every day. Right. So the work, the grunt work is, you know, 365 days. And when I receive and see the credit is going to be when I file my credit return.

[Chris]

Right. Well, I know there's a lot of like these tools that exist today to help you manage tips. So you can, I mean everyone's getting paid with credit cards today, but we want to be our servers. Miss having that cash in hand. Tools like this, I would imagine. I know Toast has built in features that does this. Would you encourage people to use these tools? Like how much does it make the work easier just to have it like everybody in the system?

[Joshua Santana]

I'm pretty sure now with the big beautiful build, a lot of these tools are going to be used more. Because I know a lot of times in the restaurant industry, some servers have the cash and it's not, not plugged in or it's not being.

[Chris]

It's harder to track.

[Joshua Santana]

It's harder to track. But now, you know, on the first 25,000, it's going to be beneficial for the employee to actually report these.

[Chris]

There's incentive there.

[Joshua Santana]

There's an incentive, yeah. And how does this benefit an individual one? When I file my tax return, I'm going to be able to show more and pay less tax. This is on the individual side, on the employer side, on the business side, it doesn't matter to them. On the individual side, they're going to be able to show more. So now if I want to get a loan or if I want to buy a home or if I'm trying to Buy a car, I'm going to be able to show a stronger return versus showing less.

[Chris]

Got it, Got it. So the last item we have on our, our list of things to talk about, unless there's anything else relative to how the entity structure impacts, but I think we unpackaged that pretty good. We got all that out. So planning opportunities for restaurant owners, that's the last thing we have to talk about before we wrap things up. So why did you add that as the last thing that we, we discussed today before wrapping it up?

[Joshua Santana]

Yeah, because I always, I like to recap and make sure that we all have these touching points and making sure I'm giving the right direction to employers, to restaurateurs to be able to utilize. I think knowing about it. Super important now that you know about it is where can I see if I'm being utilizing it, if I have it, if my preparer is actually applying for it, which is going to show one on the K1, as you mentioned, it's going to be in a box called credits. It'll show there. And then am I being able to take advantage of it if I haven't already? So yes, you're able to take advantage if you haven't already. Let's say you take a look at your K1, you don't see it on the credit side, you're able to amend those returns and take advantage of it only the last three years and then moving forward, you know about it and you're able to take advantage of it.

[Chris]

Right, Right. So we, we've gotten through our list. Our talking point of things you wanted to bring to today's conversation. Is there anything that hasn't come out of today's conversation? Now it's time to get it out.

[Joshua Santana]

So I think one strategy and compliance is going to be super important. We want to make sure that we're doing it appropriately. We're not, as mentioned prior, we're not taking more than what we should. We want to make sure that we stay in compliant because we don't want to mess with irs.

[Chris]

Right.

[Joshua Santana]

We want to make sure that we're taking the credit for not taking it inappropriately.

[Chris]

So relative to the words we talked about, compliance. But what do you mean by strategy?

[Joshua Santana]

So strategy, a lot of times, as mentioned, people mix grat and tip. The strategy is to make sure that we have it separate and making sure that we're reporting tips appropriately and GRAT appropriately.

[Chris]

Got it. Do you have opinions on like business models going forward? Just selfishly, as somebody who like. Because a lot of people think that, you know, the whole idea of the. That we're still just a tipping industry in itself is like, what, what are we doing? Like, some, a lot of people out there think that the business model of restaurants is broken and that there's better ways to do that. I'm just curious, as somebody who's seen this through the lens of a cpa, do you think that there's a better way? Like, what is the optimal way? If we, if you could swing a wand today and be like, as a CPA who understands the world of restaurants, like, why don't we just do it like this? Everything would be better. Where do you fall on that argument?

[Joshua Santana]

Yeah, so I think there's always more than one way to look at things. And I think every scenario is different as, as mentioned regarding the 1120s. It wouldn't be an option to be an 1120s if the owners are other LLCs.

[Jason]

Right.

[Joshua Santana]

So I think in my opinion it's. Every scenario should be treated differently with an appropriate lens. I don't think one blanket fits. All right. I think that's. Every scenario is going to fit some type of.

[Chris]

Right. But I can get behind that sentiment. I remember I was probably six or seven years into this thing and I was in Thailand and it was like between requests, recording. So I used to like travel the summer in my Honda Fit, similar to what I'm doing now. The camper was a lot smaller. It was a Honda Fit. And I would sleep in my tent or like lay out like the car seats and like sleeping. A sleeping pad and that thing. But I would spend winters in Thailand while the content was rolling because it was just so cheap to, to stay there. And I remember thinking to myself, I'm gonna figure it out while I'm out here. I have three months to be in one spot and just to of kind, kind of think, yeah about what have I learned? Like what are. Like when I started this thing, like I was going to crack the code. And what I've learned is that to your point, it's just so complicated. There is no one way. There is no simple. Like this is the way to do things. It's. It's like there's so many variables. There's so many different business models. There's like to your point, like it really like it's case by case.

[Joshua Santana]

For sure.

[Chris]

Yeah.

[Joshua Santana]

Case by case. Because every scenario, how we start a business, how we start then into the industry is always going to be different.

[Chris]

Right?

[Joshua Santana]

And who and how we receive this backing, you know, maybe we have Loans. Maybe we have other partners. Maybe we're in a phase of growing. Right. And in, in this essence, it's always going to be different. If in growth mode, I'm going to structure one way, if I'm in a starting mode, I'm going to structure a different way. If I'm just one individual versus five individuals. Right. I think it's. It's all going to be different.

[Chris]

So, I mean, I'm tempted to go into that. That's a, like a curious subject of like the growth mode. We already kind of Talked about over 300,000 go from LLC to S Corp. And if you're doing about 25 million, they consider C Corp.

[Joshua Santana]

Yes. Yeah, that's.

[Chris]

I did learn something today.

[Joshua Santana]

It is rough. Yeah, for sure.

[Chris]

Nothing else. You want to get out before we say goodbye?

[Joshua Santana]

I want to thank. Thank you. You know, I think giving out this knowledge to individuals, to business owners is going to be worth, you know, because then now they're able to have a tool, be able to utilize what we talked about today. And, you know, we're here to file and support, you know, especially in tax season right around the corner. Well, it's already here. We're already in January. We already started with our clients, getting the necessary information, started filing. We've already filed a few.

[Chris]

Yeah.

[Joshua Santana]

So it's.

[Chris]

I'm gonna try to get this published ASAP for you guys to get the word out there. Did you. Did I cut you short? I just want to say thank you to, you know, full transparency. Sir Boni is a sponsor and I'm really proud of how this relationship came to be. It's more of what I want to do, do where I'm in the world. I'm traveling the country using word of mouth, finding people doing really good stuff and listening to what they're saying. And, you know, Jason Carrier referred me to you folks, and you helped me connect with some other really incredible restaurant operators in your network that I got to share their story and just kind of doubling down on the truth and doubling down on being transparent, showing my work and finding people that believe in what I'm doing, like Sir Boni and. And I just can't say. I. I have to say I can't do this without you guys. Thank you so much. And it feels good. It feels like I'm doing good work. You know, I love the transparency and hopefully we can do more of this kind of stuff, going deeper, building this network of specialists. So if you're interested in Sir Boni in all on one financial solution, you guys are taxes accounting in the cfo. I'm actually going to be speaking to your CFO next. Jody Feist, looking forward to that conversation. What's the best way for us to connect with you guys?

[Joshua Santana]

Oh, for sure. So we have all social media platforms. My email is Joshuaerboniservices.com as well as we're located here in Houston, Texas. But with our systems and with technology, an email zoom teams call. You're one team call away. Right. So providing support to anywhere in the. The anywhere we're able to facilitate not only tax, but accounting fractional cfo. It's a digital world now, so it makes that much easier for us to communicate.

[Jason]

Yeah.

[Chris]

And you didn't mention that.

[Jason]

I'm back here.

[Chris]

I'm back here in Houston. So the. This is actually. It's been three months, I want to say, since our first recording, so it's great to be back here. And I think that your ads will actually be on today's episode. So if you guys just go to the show notes of today's episode episode. Everything's right there. There's even a phone number for you guys to check out. You can call that number and they'll take care of you. Please make sure you mention Restaurant Unstoppable. It helps support and validate this relationship. And thank you for advance for using our links. Josh, this is where I say, man, thank you so much for going deep into the subject that I am clueless on. It was enlightening for me and hopefully for my listeners. I'm sure it was. And this is where I say, man, there is no questioning. You are unstoppable.

[Joshua Santana]

Thank you.

[Chris]

Cheers.

[Jason]

There's another episode wrapped up here at Restaurant Unstoppable.

[Brian]

Special thanks to our guest today, Joshua Santana, going deep into the world of FICA tip crediting. I know it's not exciting, sexy stuff, but it's important and we need people like Josh in the world to tell us how to handle these things and to walk us through it. So thank you very much. And also special thanks to Sir Bony, my. My partner, my sponsor. These are exactly the type of relationships I'm trying to get into. I found Sir Bony through word of mouth. To Jason Carrier in amazing things to.

[Chris]

Say about this service.

[Brian]

All in one financial solution. They have a network of amazing badasses. They help me connect with to make an example of and they have an area of expertise, a subject I'm not strong in finance, honestly speaking, that is not my area of expertise. So they make restaurant unstoppable. Better. They make our community better. They make restaurant unstoppable network better.

[Jason]

And I can collaborate with these people.

[Brian]

To go deep into these topics that I just do not know a lot about. So this is exactly the type of relationship I'm trying to get into. I hope you guys are also finding value in these types of partnerships.

[Jason]

And if you are interested in an.

[Brian]

All in one financial solution, I highly recommend Sir Boni, it is tax season. Now's the time to reach out and to get your your taxes scheduled and filed and to consider a partner for 2026. Head over to the show notes. We'll have a phone number there for you. 281-888-2413. That's the number to call and if you call that number, you can set up a 30 minute discovery call with Cerboni. If you use that that number and you let them know that you're a restaurant unstoppable listener, you will get 20% off your first month of services.

[Chris]

If you just, if you choose to.

[Brian]

Work with Siboney, which I highly encourage you do that. So that's it for today guys, as we are wrapping up these thoughts. I am in Austin, Texas. I'll be in Dallas next week and I love to connect with my listeners. So if you want to reach out to me, let me know where you're at. If you're in Texas, I'd love to meet you. I'm always looking for a safe place to park my camper and I'm always trying to find those badass restaurant tours that are off the radar, that are.

[Jason]

Making a big dent in their communities.

[Brian]

And that are making money while they do it. So if you can think of anybody who just deserves to be made an example of, please reach out to me. Ericestaurantunstoppable.com I'm always listening.

[Jason]

Until next time. Peace out.