Work out the 8% allocation before you file
1099ERICH sells IRIS filing software from $149. Allotip computes the line 7 allocation from your POS export, in your browser.
| Allotip | 1099ERICH | |
|---|---|---|
| Where it runs | In your browser tab. No install, no account. Your payroll file is never uploaded. | Windows software |
| Price | Free: Form 8027 lines 1–8 and every check for any number of employees, with the first 5 employees itemized. Pro: $19 for 7 days, $15/month or $59/year. | $149 up to 1,000 records; $249 up to 5,000 |
| What it does | Computes lines 1–8 and the line 7 tip allocation per employee from your POS or payroll export. Doesn't e-file. | Files Form 8027 and other IRIS forms |
Honest take: 1099ERICH files the return; Allotip doesn't. Use Allotip to compute the allocation per employee and the line totals, then enter them in your filing tool.
Competitor details checked on 2026-10-28 from their public pages: 1099ERICH Form 8027 software. Prices change — check their site for the current offer. Product names are trademarks of their owners; we are not affiliated with them.
FAQ
Can I check Allotip's math?
Yes. The allocation-by-period CSV shows each step: the employee's share, the shortfall and the allocation.
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.