Form 8027 and the 8% tip allocation, from your POS export
Drop tips, sales and hours by employee. Allotip totals Form 8027 lines 1–8 and, when reported tips fall short of 8% of gross receipts, allocates the difference to directly tipped employees exactly as the IRS instructions lay out — the W-2 box 8 amount for each. It runs in your browser; nothing is uploaded.
How it works
- Drop your tips and sales export (CSV or Excel) — or try the sample, or download the template.
- Pick the year, method and allocation period you use for the whole year.
- Read Form 8027 lines 1–8 and the checks, then print the summary. With Pro, see every employee and download the W-2 box 8 CSV, the allocation-by-period CSV and the Excel workbook.
Why Allotip
For restaurant and bar owners, payroll admins, bookkeepers and accountants who file Form 8027 and must allocate tips when reported tips fall below 8% of sales.
From your POS or payroll export
Drop a CSV or Excel file: one row per tipped employee per payroll period, with sales, hours and tips reported. Charged tips, charge receipts and service charges are read when present.
Form 8027 lines 1–8
Charged tips and charge receipts, service charges, indirect and direct tips reported, gross receipts, 8% of receipts, tips allocated and the directly tipped head count.
The IRS six-step allocation
The line 7 method exactly as the instructions lay it out: 8% of receipts, less indirect tips, shared by sales or hours, less each server's tips, then the shortfall shared out.
Receipts or hours, period or year
Switch between the gross-receipts and hours-worked methods, payroll-period or calendar-year allocation, 8% or an approved lower rate, cents or whole dollars.
Checks before you file
Periods that can't be allocated, duplicates, negative rows, staff in both direct and indirect roles, lower-rate warnings, and the optional worksheet for potential unreported tips.
Ready for your W-2s
Pro exports W-2 box 8 allocated tips per employee, the allocation step by step for every period, and an Excel workbook for your files.
Simple pricing
Free for lines 1–8 and every check. Pro for every employee, the W-2 box 8 CSV and the workbook.
Free
- Import any number of employees
- Form 8027 lines 1–8 and every check
- First 5 employees itemized on screen and in print, with a footer
- No signup, nothing uploaded
7-day pass
- 7 days of Pro, no subscription
- Every employee, printed with no footer
- W-2 box 8 CSV, period CSV, Excel workbook
- For W-2 and Form 8027 season
Pro Monthly
- Every employer, every client
- Check tips every payroll period
- All exports
- Cancel anytime
Pro Yearly Best value
- Everything in Pro
- Period checks and filing season
- Costs less than 4 months of monthly
Prices in USD. Secure checkout and sales tax handled by our payment partner. Already bought? Enter your license key.
Tools & guides
- Form 8027 tip allocation calculator, from your POS export
- Allocated tips calculator for W-2 box 8
- 8% tip rule calculator: gross receipts or hours worked
- What Is Form 8027? Tip Reporting for Large Food or Beverage Establishments
- Form 8027 Allocation, Step by Step — the IRS Gross-Receipts Example
- Form 8027 Deadline for 2026: March 1 or March 31, 2027 (IRIS)
- W-2 Box 8 Allocated Tips vs Box 12 Code TP
- Form 8027 software: what it costs and what it does
- Work out the tip allocation before you pay to file
- Work out the 8% allocation before you file
FAQ
What does Allotip do?
It reads tips, sales and hours by employee from a POS or payroll export, totals Form 8027 lines 1–8, and allocates tips the way the Form 8027 instructions describe when reported tips are below 8% of gross receipts — giving the W-2 box 8 amount for each directly tipped employee. It doesn't run payroll and doesn't file anything.
Is my data uploaded?
No. Your file is read by JavaScript in your browser tab and never sent to us or anyone else. The data isn't stored, so closing the tab clears it. Your settings (year, method, rate, period, employer name) can be saved in this browser.
Which files can I use?
CSV, tab-separated or Excel with one row per tipped employee per payroll period: employee, period end, tip type (direct or indirect), gross receipts and/or hours, and tips reported (or cash and charged tips). Charge receipts, charged tips and service charges are optional. Download the template to see the layout.
What's free?
Importing any number of employees, Form 8027 lines 1–8 and every check, plus the first 5 employees itemized on screen and in print (with a footer). Pro itemizes every employee and exports the W-2 box 8 CSV, the allocation-by-period CSV and the Excel workbook.
Do I have to file Form 8027?
Only if you operate a large food or beverage establishment: food or drink consumed on the premises, tipping customary, and more than 10 employees on a typical business day in the previous year by the instructions' hours test. Allotip doesn't decide that for you — read the instructions.
What isn't covered?
E-filing (use paper or an IRIS filer), the good-faith agreement method (line 7c), multiple establishments in one file (run each separately), and box 12 code TP or occupation codes (confirm those in payroll).
Is this tax advice?
No. Allotip applies the steps in the 2026 Instructions for Form 8027 (October 8, 2026) to the data you provide. Ask your tax adviser or payroll provider what applies to you.