Though Toast does not provide tax advice or file this form on your behalf, we can show you where to find the information in your reporting. Consult a CPA or tax professional if you have questions or need advice.
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Employers must annually report receipts and tips from their food and beverage establishments to the IRS using the Employer's Annual Information Return of Tip Income and Allocated Tips form (Form 8027). Check out the IRS's instructions here (external link).
The form has line items that can be filled out with the information found in Toast Web reports. Follow the instructions in this article to find the information you need.
Line 1: Total charged tips for calendar year (Form 8027)
Enter the total amount of tips that are shown on charge receipts for the year. Don't include service charges.
In Toast Web, navigate to Reports > Sales > Sales summary.
Adjust the date range at the top of the report. It will automatically refresh.
Locate the Tip Summary tile to view your tip data within the date range you set.
Line 2: Total charge receipts showing charged tips (Form 8027)
From the IRS Form 8027 instructions (external link):
Enter the total sales from the provision of food and beverages (other than non allocable receipts, as defined earlier) from charge receipts that had a charged tip shown. Include credit card charges and other credit arrangements and charges to a hotel room unless your normal accounting practice consistently excludes charges to a hotel room. Don't include any tips or any state or local taxes in the amounts reported. If you indicated that your establishment accepts credit cards, debit cards, or other charges but have no amounts to report on line 2, enter zero.
Enter the total sales from the provision of food and beverages from charge receipts that has a charged tip shown.
Navigate to Reports > Payments > Payments.
Select the Show/Hide button and select the appropriate fields you'd like to see, including Amount and Tip.
Adjust the date range at the top of the report.
Select Update to reload the report.
Export the report to calculate the total sales number required for Line 2.
Note: As the date range cannot be longer than six months, you will need to pull multiple reports to see the totals for the year.
Line 5: Gross receipts from food and beverages (Form 8027)
Enter the total gross receipts from the provision of food and beverages for their establishment year.
Navigate to Reports > Sales > Sales summary.
Adjust the date range at the top of the report. The report will automatically refresh.
Locate Gross Sales and Net Sales in the Net Sales Summary tile.
This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice.