Prime cost is cost of sales plus fully burdened labor. Taking food cost from purchases or labor from the POS can move the number ten points. A worked four-week period, the benchmarks, and the Section 45B tip credit threshold the IRS website currently gets wrong.
The FICA tip credit refunds the employer 7.65% payroll tax on tips above $5.15/hour for restaurants — now extended to beauty businesses. Worked example inside.
FICA Tip Credit: How Restaurants Claim the Section 45B Credit in 2026 Read More »
How to structure a restaurant chart of accounts so it produces weekly prime cost by category — with a worked example, common mistakes, and FAQs.
Restaurant Chart of Accounts: How to Set One Up (With Example Numbers) Read More »