6300  22 Mile Road, Suite 3

Shelby Township, MI  48317

(586) 323-1200  or  (517) 455-7003

Tip Allocation

All employers that have an establishment where tipping is a customary practice should consider whether to file form 8027. The tip allocation form is to be completed by employers with more than 10 people, who commonly worked more than 80 hours in a day during the preceding year. This means that all employees, not just the tipped employees, are counted in the ten and 80 requirement. The instructions for form 8027 includes a worksheet for determining whether the 80 hour limit has been reached.  For more information regarding form 8027, click on the following IRS link;