Posted on October 1, 2010

The food and beverage industry is significantly understating its share of federal taxes on tips received by employees. Form 8027 should be completed for each restaurant establishment a business runs even if this requires multiple 8027 forms for a single federal identification number. The form is required by food and beverage establishments where tipping is customary, food and drink are served for on-premises consumption, and/or employ more than ten employees (80 hours) on a typical day.

At Paycor, tip employers can be setup to include Form 8027 in their fourth quarter tax packet. The client can use the form we provide to complete the Form 8027.

For more information, go to and search Tip Examination or contact CPA Care for more information on Paycor providing Form 8027.