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Payroll and Tip Reporting


Federal Internal Revenue Service

Large food or beverage establishments must use Form 8027 for payroll and tip reporting when reporting to the Internal Revenue Service (IRS). Reporting is done on receipts from food or beverage operations and tips reported by employees.

In addition, all employees receiving $20 or more a month in tips must report all of their tips to their employer.

Employers who operate large food or beverage establishments must file Form 8027. Those who own more than one establishment must file a Form 8027 for each establishment.

If all of the following apply, then an establishment qualifies as a large food or beverage establishment:
  • Food or beverage is provided for consumption on the premises;
  • Tipping is a customary practice; and
  • More than 10 employees working 80 hours total in a day.

Internal Revenue Service (IRS)

Business Questions Hotline
Phone (800) 829-4933

7 a.m. to 7 p.m. local time

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