GRATUITY SOLUTIONS LLC
NAPLES, FLORIDA

A New Problem for the Restaurant Industry that is solved by Gratuity Solutions Gratuity Solutions, the nation’s leader of automated gratuity and tip distributions, today announced Tip to Cards is now available in the Washington, D.C. metropolitan area. WASHINGTON DC, Nov. 25, 2014 /PRNewswire/ — Gratuity Solutions, the nation’s leader of automated gratuity and tip distributions, today announced Tip to Cards is now available in the Washington, D.C. metropolitan area. With Tip to Cards, restaurant employers now have the ability to direct deposit a tipped employee’s tip income directly to the employee’s personal card. GratSync’s restaurant clients can now eliminate cash tenders or separate checks for tip income by simply depositing the tip income to the employee’s card. Employees can use Form 4070A, Employee’s Daily Record of Tips, to keep a daily record of their tips, and Form 4070, Employee’s Report of Tips to Employer, to report their tips to you. Both forms are in Publication 1244 (PDF), Employee’s Daily Record of Tips and Report to Employer. You may also provide other means for your employees to report tips to you, for example, a system for electronic tip reporting by employees. If you operate a large food or beverage establishment, you must file Form 8027 (PDF), Employer’s Annual Information Return of Tip Income and Allocated Tips, for each calendar year, and may be required to allocate tips to your employees. You operate a large food or beverage establishment if tipping is customary, food or beverages are provided for consumption on the premises, and you normally employ more than ten people who work more than 80 hours on a typical business day. If you have more than one large food or beverage establishment, you must file a separate Form 8027 for each establishment. Form 8027 is due on the last day of February of the next year (or March 31 if you are filing electronically). If you meet the criteria for filing Form 8027, but do not file, the law provides for penalties for each failure to timely file a correct information return, including failure to file electronically, if required. Employers may participate in the Tip Rate Determination and Education Program. The program primarily consists of voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. These voluntary compliance agreements offer many benefits for the employer and the employee. Two of the agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the Gaming (casino) industry. To get more information about GITCA, TRDA, or TRAC agreements, access the IRS website at www.irs.gov and search for Market Segment Understanding (MSU) agreements: search for keyword “MSU tips.” . This revenue ruling provides guidance for employers and employees in a question and answer format regarding social security and Medicare taxes imposed on tips, including information on the difference between tips and service charges, the reporting of the employer share of social security and Medicare taxes under section 3121(q), and the section 45B credit. A New Problem for the Restaurant Industry that is solved by Gratuity Solutions Gratuity Solutions, the nation’s leader of automated gratuity and tip distributions, today announced Tip to Cards is now available in the Washington, D.C. metropolitan area. WASHINGTON DC, Nov. 25, 2014 /PRNewswire/ — Gratuity Solutions, the nation’s leader of automated gratuity and tip distributions, today announced Tip to Cards is now available in the Washington, D.C. metropolitan area. With Tip to Cards, restaurant employers now have the ability to direct deposit a tipped employee’s tip income directly to the employee’s personal card. GratSync’s restaurant clients can now eliminate cash tenders or separate checks for tip income by simply depositing the tip income to the employee’s card. Employees can use Form 4070A, Employee’s Daily Record of Tips, to keep a daily record of their tips, and Form 4070, Employee’s Report of Tips to Employer, to report their tips to you. Both forms are in Publication 1244 (PDF), Employee’s Daily Record of Tips and Report to Employer. You may also provide other means for your employees to report tips to you, for example, a system for electronic tip reporting by employees. If you operate a large food or beverage establishment, you must file Form 8027 (PDF), Employer’s Annual Information Return of Tip Income and Allocated Tips, for each calendar year, and may be required to allocate tips to your employees. You operate a large food or beverage establishment if tipping is customary, food or beverages are provided for consumption on the premises, and you normally employ more than ten people who work more than 80 hours on a typical business day. If you have more than one large food or beverage establishment, you must file a separate Form 8027 for each establishment. Form 8027 is due on the last day of February of the next year (or March 31 if you are filing electronically). If you meet the criteria for filing Form 8027, but do not file, the law provides for penalties for each failure to timely file a correct information return, including failure to file electronically, if required. Employers may participate in the Tip Rate Determination and Education Program. The program primarily consists of voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. These voluntary compliance agreements offer many benefits for the employer and the employee. Two of the agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the Gaming (casino) industry. To get more information about GITCA, TRDA, or TRAC agreements, access the IRS website at www.irs.gov and search for Market Segment Understanding (MSU) agreements: search for keyword “MSU tips.”