1. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 1 7300. Payroll Guide, 7345 IRS Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips A. The Purpose of This Policy The purpose of this policy is to comply with federal laws regarding the reporting of tipped income. IRS Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, provides information for the Internal Revenue Service for enforcing federal law regarding service employees paying income taxes on their tips. Continue ►

2. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 2 7300. Payroll Guide, 7345 IRS Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips B. Background on Tip Law By federal law, all employees receiving $20 or more per month in tips must report 100% of their tips to their employer. As an employer, the Company must report those tips to the IRS. Any employer that employs tipped employees and that typically employs ten or more total full-time employees (whether or not they are tipped employees) must file Form 8027 with the IRS by the last day of February each year for the previous calendar year. There are substantial penalties for employers who do not report employees’ tips. Continue ►

3. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 3 7300. Payroll Guide, 7345 IRS Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips C. Procedures For procedures on completing and filing IRS Form 8027, see the online instructions. Keep a copy of the file Form 8027 for company records. online instructions End

4. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 4 7300. Payroll Guide, 7345 IRS Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips