Instructions For Form 8027 - 2016 Page 4


If you filed Form W-2 with the SSA. Use the current
employees and the Form 941 that you file to report wages
version of Form W-2c to report the corrected allocation and
and taxes for employees working for the establishment.
correct the previously filed Form W-2.
Type of Establishment
If you furnished Form W-2 to an employee but didn't
file it with the SSA. Prepare a new Form W-2 with the
Check the box (check only one box) on the form that best
describes the type of food or beverage establishment.
correct information and file Copy A with the SSA. Write
“Corrected” on the employee’s new copies (B, C, and 2), and
An establishment that serves evening meals only (with or
furnish them to the employee. Don't write “Corrected” on
without alcoholic beverages).
Copy A of the Form W-2 that you file with the SSA.
An establishment that serves evening and other meals
(with or without alcoholic beverages).
If you furnished Form W-2 before the end of the year.
An establishment that serves only meals other than
You may include on the early Form W-2 the employee’s
evening meals (with or without alcoholic beverages).
actual tip allocation or a good-faith estimate of the allocation.
An establishment that serves food, if at all, only as an
Signify a good-faith estimate by writing “Estimate” next to the
incidental part of the business of serving alcoholic
allocated amount in box 8 of the Form W-2.
If you didn't include an allocation on the early Form W-2 or
Employer's Name and Address
if the estimated allocation on the early form differs from the
actual amount by more than 5%, prepare a new Form W-2
Enter the name and address of the entity or individual whose
with the correct information, and file Copy A with the SSA.
EIN was provided earlier. Enter foreign addresses as follows:
Write “Corrected” on the employee’s new copies (B, C, and
city, province or state, and country. Don't abbreviate the
2) and furnish them to the employee during January of the
name of the country.
next year. Don't write “Corrected” on Copy A of the Form W-2
Establishment Number
that you file with the SSA.
Don't send Forms W-2 to the IRS. We use the
Enter a five-digit number to identify the individual
information shown on the Forms W-2 that you file
establishments that you're reporting under the same EIN.
with the SSA.
Give each establishment a separate number. For example,
each establishment could be numbered consecutively,
Difference Between Service Charges
starting with 00001. Once you assign a number to an
establishment, always use the same number for that
and Tips
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
tax purposes. Any portion of a service charge that is
Lines 1 Through 8
distributed to an employee is wages, and you must withhold
federal income tax, social security tax, and Medicare tax and
Credit Card Sales
include the amount on Form W-2 as wages. Service charges
aren't reported as tips on Form 8027. You may be required to
If the receipts from charges under any credit arrangement
report service charges on line 3; see the instructions for
(for example, credit or debit cards and other electronic
line 3, later. To accurately report and pay your taxes, you
settlement methods) reflect tips, then you must enter on lines
must correctly identify amounts as either a tip or a service
1 and 2 the appropriate amounts shown on the charge
charge. Generally, an amount is a tip if:
receipts. See the instructions for line 1 below.
The payment is made free from compulsion,
Rounding Off to Whole Dollars
The customer has the unrestricted right to determine the
amount (including zero),
You may round off cents to whole dollars on your Form 8027.
The payment isn't the subject of negotiation or dictated by
If you do round to whole dollars, you must round all amounts.
employer policy, and
To round, drop amounts under 50 cents and increase
The customer has the right to determine who receives the
amounts from 50 to 99 cents to the next dollar. For example,
$1.39 becomes $1 and $2.50 becomes $3.
The absence of any of these factors creates a doubt as to
If you have to add two or more amounts to figure the
whether a payment is a tip and indicates that the payment
amount to enter on a line, include cents when adding the
may be a service charge.
amounts and round off only the total.
Specific Instructions
Line 1. Total Charged Tips for Calendar Year
File a separate Form 8027 for each large food or beverage
Enter the total amount of tips that are shown on charge
establishment. Use Form 8027-T when filing more than one
receipts for the year.
Form 8027.
Line 2. Total Charge Receipts Showing Charged
Name and Address of Establishment
and Employer Identification Number
Enter the total sales from the provision of food and
Type or print the name and address of the establishment.
beverages (other than nonallocable receipts as defined
They may be different from your mailing address, as in the
earlier) from charge receipts that had a charged tip shown.
case of employers who have more than one establishment. If
Include credit card charges and other credit arrangements
mail isn't delivered to the street address of the establishment,
and charges to a hotel room unless your normal accounting
enter the P.O. box number. The EIN should be the same as
practice consistently excludes charges to a hotel room. Don't
the number on the Forms W-2 that you furnish to the
include any state or local taxes in the amounts reported.
Instructions for Form 8027 (2016)


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