The IRS Form 8087 is also known as the Employer’s Annual Information Return of Tip Income and Allocated Tips. It is mostly used as a tool by employers to be able to make a report of receipts as well as tips that are received on large food or beverages.
The form aims to provide information to the IRS, which will help determine the allocated tips that should be given to each employee when they receive tips while working.
What information must the form contain?
Filling out the form requires that essential information be provided that will help the IRS in assessing the information provided by each organization. The form therefore has to contain the following when it is filled.
- The form must contain the name of the establishment and its address.
- The form must specify the type of establishment.
- The form should have the employer’s identification number as well as their total charged tips.
- The form should also contain the total charged tips for the calendar year as well as the receipts that show the tips that have been charged over the year.
- The total amount of service charges, which are less than 10% paid in wages to the workers, must also be highlighted in the form.
- The total tips that are reported either directly or indirectly by employees.
- The total number of directly tipped employees must also be stated.
- The form should also contain gross receipts from foods and beverages.
How to fill out Form 8087
To fill out Form 8087, you need to follow a laid-out step-by-step process that cannot be skipped.
- Before filling out the form, you must ensure that you are required to file Form 8027 as an employer operating a large food or beverage establishment.
- Once you confirm this, you should go ahead to fill in the name of the establishment, the address, the employer’s name and address, the type of establishment, and the employer’s identification number.
- Also, enter the total amount of tips shown on charge receipts for the year.
- Enter the total sales from the provision of food and beverages from charge receipts that had a charged tip shown.
- Indirectly tipped employees, such as cooks, bussers, and service bartenders, must also have their tips recorded.
- The total amount of tips reported for the year by directly tipped employees, such as bartenders and waitstaff, must also be entered.
- Enter the total gross receipts from the provision of food and beverages for the establishment for the year.
- Should the total tips reported during any payroll period be less than 8% of the establishment’s gross receipts for that period, then the excess should be allowed to the employees.
- Ensure to give the total number of directly tipped employees who worked at the business in the year.
- You must then sign the form as the owner of the business in the capacity of president, vice president, or someone with the authorized signature.
Where to apply for the Form
Application for the form can be done on the IRS website, as there will also be help given in case clarification is needed in the application process.
