Form 8027

Overview

The Form 8027 feature in R365 assists with the completion of IRS form 8027. For proper completion of IRS form 8027 based on the needs of your organization, please refer to Instructions for Form 8027 (2023) (irs.gov).

After setup, users can generate an 8027 report with data from R365 for a desired location and year. The generated report will be populated with tip and sales data associated with configured jobs, POS sales account categories, and operational report categories. 

The generated 8027 report can be edited to adjust for any additional information that was not in the R365 data. Any adjustments are saved on the generated report for future reference. 

The generated 8027 report in Workforce is displayed in the same order as the IRS form 8027 to assist in data transfer. Once the report is completed in Workforce, users can use it to transfer the data from Workforce to the IRS form in order to submit it to the IRS.

Electronic File

After an 8027 report has been generated and edited, it can be included in an electronic file. Multiple reports can be included in the same electronic file. If the selected reports are associated with multiple legal entities, a single electronic file is created for each legal entity that contains the details for the combined reports for that legal entity.

When creating electronic files, all of the fields are required. The following fields must be manually edited on each generated report:

• Type of Establishment

• Allocation Method

• Does this establishment accept credit cards, debit cards, or other charges?

Learn more about editing 8027 reports and creating electronic files here. 

Form 8027 Pages and Sidesheets

Form 8027 Page

The Form 8027 page displays all generated 8027 reports. Here, users can generate, view, adjust, complete, and delete the 8027 reports for all locations.

Form 8027 Sidesheet

The Form 8027 sidesheet displays the details for a generated 8027 report. Here, users can view and edit the report details.

Setup

Location Record

The 'Name of Establishment', address,and 'Establishment Number' details on the 8027 report are populated from the location's name, address, and IRS establishment number found on the associated Location Record.

Legal Entity Record

The 'Employer's Name', address, and 'Employer Identification Number' details on the 8027 report are populated from the name, address, and tax ID of the legal entity associated with the location. The legal entity name, address, and tax ID are found on the associated Legal Entity Record.

Sales Categores

The 8027 report includes totals related to POS sales categories with service charges of less than 10% that are paid as wages to employees. For more information on the definition of a service charge, please refer to the IRS From 8027 instructions (irs.gov).

On the Form 8027 page, the POS sales categories that are applicable are selected prior to generating reports. Sales category selections are saved as part of the general report configuration. After initial setup, these selections should only need adjustment if changes are made in the POS or if the current selection is incorrect.

GL Accounts - Operational Report Categories

The 8027 report includes sales totals related to food and beverage sales. Food and beverage sales are determined by the GL accounts associated with the following operational report categories: 

• Sales - Food

• Sales - N/A Beverage

• Sales - Liquor

• Sales - Beer

• Sales - Wine

Prior to generating 8027 reports, all GL accounts associated with food and beverage sales will need to be configured with the appropriate operational report category.

Jobs

The 8027 report includes totals related to tips for directly tipped jobs. Only tips associated with employees who worked a directly tipped job or an indirectly tipped job will be included. 

Jobs are designated as 'Directly Tipped' or 'Indirectly Tipped' on their Job Record.