Instructions For Form 8027 - 2016 (Page 4 of 8) in pdf

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.

beverages.

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,

CAUTION

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,

payment.

$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

2016

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

Tips

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.

-4-

Instructions for Form 8027 (2016)

Instructions For Form 8027 - 2016 Page 4

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