Form 8027, the Employer’s Annual Information Return of Tip Income and Allocated Tips, typically does not apply to food trucks, catering services, or delivery-only businesses, but there are specific factors to consider based on the nature of the operation. Here’s a breakdown:
Form 8027 Requirements:
Form 8027 applies to large food or beverage establishments where:
- Food or beverages are provided for consumption on the premises.
- Tipping is customary.
The key here is the “on the premises” consumption requirement.
Food Trucks
- Does Not Apply:
Food trucks generally serve food to go and do not have a designated space for on-premises consumption (e.g., seating areas). Since tipping is not customary in most food truck operations and food is typically consumed elsewhere, Form 8027 is not required.
Catering Services
- Does Not Apply:
Catering businesses provide food and beverage services for events, often at external locations. Since catering typically doesn’t involve on-premises consumption at the employer’s facility or a customary tipping environment, Form 8027 is generally not required.
Delivery-Only Businesses
- Does Not Apply:
Delivery-only operations, like restaurants that offer only takeout and delivery services (e.g., food delivery apps), do not have on-premises consumption. Tips are often collected electronically or not customary for delivery drivers in a way that Form 8027 tracks. As a result, Form 8027 does not apply.
When Form 8027 Might Apply
If a food truck, catering service, or delivery business also operates a physical space (e.g., a food truck with an adjacent seating area or a catering company with an on-premises restaurant):
- The on-premises consumption requirement might be met, potentially triggering Form 8027 if the establishment qualifies as a large food or beverage establishment (see thresholds below).
Threshold for Large Establishments
For Form 8027 to apply, the business must:
- Employ more than 10 employees who work more than 80 combined hours on a typical business day.
- Be in the food or beverage service industry where tipping is customary.
Conclusion
Form 8027 does not generally apply to food trucks, catering services, or delivery-only businesses due to the lack of on-premises consumption. However, businesses with mixed operations (e.g., a food truck with a seating area) should evaluate their specific situation to determine compliance.
If you need help evaluating your business structure or compliance requirements, let me know!
