Vision Payroll

January 15, 2011

2010 Form W-2 Tips, Part 9, Box 8 Allocated Tips

This is one in a continuing series on the 2010 Form W-2, Wage and Tax Statement, which employers must generally furnish to employees no later than January 31, 2011. Forms mailed on the due date are considered furnished if properly addressed. Employers unable to meet that deadline may file a request for extension of time to furnish the forms. Today we review Box 8, allocated tips.

Use Form 8027 to Determine Box 8 Amount

Box 8 shows the amount of allocated tips. Large food and beverage establishments use Form 8027, Employee’s Annual Information Return of Tip Income and Allocated Tips to determine the amount of tips to report in Box 8. A large food and beverage establishment meets all three of the following criteria:

  1. Food or beverage is provided for consumption on the premises.
  2. Tipping is a customary practice.
  3. More than 10 employees who work more than 80 hours were normally employed on a typical business day during the preceding calendar year.

Do Not Duplicate Box 8 Entries

The amount in this box is not to be reported in box 1, box 3, box 5, or box 7.

Box 9, Advance EIC Payment Is the Next Topic

The next topic in this continuing series will be Box 9, advance EIC payment. Contact Vision Payroll with any questions on the 2010 Form W-2.

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