furnish them to the employee. Don't write “Corrected” on
An establishment that serves evening and other meals
Copy A of the Form W-2 that you file with the SSA.
(with or without alcoholic beverages).
An establishment that serves only meals other than
If you furnished Form W-2 before the end of the year.
evening meals (with or without alcoholic beverages).
You may include on the early Form W-2 the employee’s
An establishment that serves food, if at all, only as an
actual tip allocation or a good-faith estimate of the allocation.
incidental part of the business of serving alcoholic
Signify a good-faith estimate by writing “Estimate” next to the
allocated amount in box 8 of the Form W-2.
Employer's Name and Address
If you didn't include an allocation on the early Form W-2 or
if the estimated allocation on the early form differs from the
Enter the name and address of the entity or individual whose
actual amount by more than 5%, prepare a new Form W-2
EIN was provided earlier. Enter foreign addresses as follows:
with the correct information, and file Copy A with the SSA.
city, province or state, and country. Don't abbreviate the
Write “Corrected” on the employee’s new copies (B, C, and
name of the country.
2) and furnish them to the employee during January of the
next year. Don't write “Corrected” on Copy A of the Form W-2
that you file with the SSA.
Enter a five-digit number to identify the individual
establishments that you are reporting under the same EIN.
Don't send Forms W-2 to the IRS. We use the
Give each establishment a separate number. For example,
information shown on the Forms W-2 that you file
each establishment could be numbered consecutively,
with the SSA.
starting with 00001. Once you assign a number to an
Difference Between Service Charges
establishment, always use the same number for that
establishment each year. If you close an establishment, don't
use the number you assigned to it for another establishment.
Service charges are treated differently from tips for federal
Lines 1 Through 8
tax purposes. Any portion of a service charge that is
distributed to an employee is wages, and you must withhold
Credit Card Sales
taxes and include the amount on Form W-2 as wages. To
accurately report and pay your taxes, you must correctly
If the receipts from charges under any credit arrangement
identify amounts as either a tip or a service charge.
(for example, credit or debit cards and other electronic
Generally, an amount is a tip if:
settlement methods) reflect tips, then you must enter on lines
The payment is made free from compulsion,
1 and 2 the appropriate amounts shown on the charge
receipts. See instructions for line 1 below.
The customer has the unrestricted right to determine the
amount (including zero),
Rounding Off to Whole Dollars
The payment isn't the subject of negotiation or dictated by
employer policy, and
You may round off cents to whole dollars on your Form 8027.
The customer has the right to determine who receives the
If you do round to whole dollars, you must round all amounts.
To round, drop amounts under 50 cents and increase
The absence of any of these factors creates a doubt as to
amounts from 50 to 99 cents to the next dollar. For example,
whether a payment is a tip and may indicate the payment is a
$1.39 becomes $1 and $2.50 becomes $3.
If you have to add two or more amounts to figure the
amount to enter on a line, include cents when adding the
amounts and round off only the total.
Line 1. Total Charged Tips for Calendar Year
File a separate Form 8027 for each large food or beverage
establishment. Use Form 8027-T when filing more than one
Enter the total amount of tips that are shown on charge
Name and Address of Establishment
receipts for the year.
and Employer Identification Number
Line 2. Total Charge Receipts Showing Charged
Type or print the name and address of the establishment.
They may be different from your mailing address, as in the
Enter the total sales (other than nonallocable receipts as
case of employers who have more than one establishment. If
defined earlier) from charge receipts that had a charged tip
mail is not delivered to the street address of the
shown. Include credit card charges and other credit
establishment, enter the P.O. box number. The employer
arrangements and charges to a hotel room unless your
identification number (EIN) should be the same as the
normal accounting practice consistently excludes charges to
number on the Forms W-2 that you furnish to the employees
a hotel room. Don't include any state or local taxes in the
and the Form 941 that you file to report wages and taxes for
employees working for the establishment.
Line 3. Total Amount of Service Charges of Less
Type of Establishment
Than 10% Paid as Wages to Employees
Check the box (check only one box) on the form that best
Enter the total amount of service charges of less than 10%
describes the type of food or beverage establishment.
that have been added to customers' bills and have been
An establishment that serves evening meals only (with or
distributed to your employees for the year.
without alcoholic beverages).