These instructions give you some background information about Form 8027. They tell you who must file Form 8027, when and where to file, and how to fill Form 8027 out line by line.
All employees receiving $20 or more a month in tips must report 100% of their tips to their employer.
Who Must File
You must file Form 8027 if you are an employer who operates a large food or beverage establishment.
A large food or beverage establishment is a food or beverage operation:
- That is located in the 50 states or in the District of Columbia,
- Where tipping of food or beverage employees by customers is customary, and
- Whose employer normally employed more than 10 employees on a typical business day during the preceding calendar year. We call this the 10-employee test.
If you provide food or beverages at more than one location, the activity at each separate location is considered to be a separate food or beverage operation. You could also have more than one food or beverage operation within a single building. Each activity conducted within a single building is treated as a separate location if the customers of the activity, while being provided with food or beverages, occupy an area separate from that occupied by customers of other activities and the gross receipts from the activity are recorded separately.
Generally, tipping isn't considered customary in a cafeteria-style operation or if at least 95% of total sales (other than carryout) had a service charge of 10% or more. See Regulations section 31.6053-3(j)(7) and (18) for more information. If tipping isn't considered customary, the food or beverage operation is not a large food or beverage establishment.
When To FileFile Form 8027 (and Form 8027-T when filing more than one Form 8027) by February 29, 2016. However, if you file electronically, the due date is March 31, 2016.
Read more here.