Form 8846

[Sabre]

Haven't done too many of these in almost 30 years-HELP!

Line 1 of the form asks for tips received by the employee and on which SS & MC taxes were paid. This amount would appear to come right off of the W-3 (Social Security Tips) or box 7.

Line 2 is where i am having the problem-how do i come up with the tips that are not allowed for this credit? Is there a short cut or do i have to have the payroll service analyze each individual employee to see how much of their tip needs to go to meet the minimum wage.

I have not asked the payroll service but i do not think they have been filing form 8027?
They have more than 10 wait staff.

Will this be a problem if i try to amend prior year returns?

[JG EA]

Haven't done too many of these in almost 30 years-HELP!

Line 1 of the form asks for tips received by the employee and on which SS & MC taxes were paid. This amount would appear to come right off of the W-3 (Social Security Tips) or box 7.

Line 2 is where i am having the problem-how do i come up with the tips that are not allowed for this credit? Is there a short cut or do i have to have the payroll service analyze each individual employee to see how much of their tip needs to go to meet the minimum wage.

I have not asked the payroll service but i do not think they have been filing form 8027?
They have more than 10 wait staff.

Will this be a problem if i try to amend prior year returns?

The instructions for Form 8846 say you have three years to amend.

As far as the line entries the figures would come from I think I would look at the 941's and the W-2's to make sure some correction wasn't already made.
Note line 2:

If you pay each tipped employee
wages (excluding tips) equal to or
more than $5.15 an hour enter zero on
line 2.

So, each employee:

This is the total amount that would be
payable to the employee at $5.15 an
hour reduced by the wages (excluding
tips) actually paid to the employee
during the month.

As for Form 8027 - It does seem if someone should have filed this. I'm not sure quite how that would affect your filings. Perhaps someone else has experience with that. But maybe they did and you could get copies to help you with your project.