Instructions For Form 8027 (2015) (Page 4 of 8) in pdf

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

beverages.

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

Establishment Number

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.

CAUTION

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

and Tips

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.

payment.

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.

service charge.

If you have to add two or more amounts to figure the

amount to enter on a line, include cents when adding the

Specific Instructions

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

2015

Form 8027.

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

Tips

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

amounts reported.

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).

-4-

Instructions For Form 8027 (2015) Page 4

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