&RESTAURANT

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ASSOCIAT

ION2013 New M

ember Guide

KANSAS

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OUR MISSIONThe Kansas Restaurant and Hospitality Association, founded in 1929, is the leading business association for restaurants, hotels, motels, country clubs, private clubs, and allied business in Kansas. Along with the Kansas Restaurant and Hospitality Association Education Foundation, the association works to represent, educate and promote the rapidly growing industry of hospitality in Kansas.

BOARD OF DIRECTORSKRHA Officers

John Arnold, ChairRedRock Canyon Grill

Hugh O’Reilly Jr., Chair Elect Past ChairMcDonald’s

Damian Farris, SecretaryJazz, A Louisiana Kitchen

Bill Michaud, TreasurerParrish Hotel Corporation

Scott Redler, ChairmanFreddy’s Frozen Custard

KRHA Board of DirectorsJustin Dame, Chair Elect

Outback Steakhouse

Bill Goodlatte, Immediate Past ChairLDF Companies, Wendy’s

Bryan Childs, DirectorDr. Pepper Snapple Group

Michael Ferguson, DirectorSpringfield Grocers

Al Hinman, DirectorHinman Restaurant Group, Inc.

Aaron Miller, DirectorBen E. Keith Corporation

Les Padzensky, DirectorWarren Theatres

Michael Phipps, Director, Past ChairDoubleTree by Hilton

Dale Schmitt, Allied DirectorRemote Video of KC

Patrick Schreiner, DirectorHeartland Payment Systems

Gene Sullentrop, Director/NRA DirectorIn the Sauce Brands

Sabrina Symms, Director, Past ChairAmerica’s Best Value Inn/

Vagabond

Al Ward, Director, Past ChairTaco Casa

A. Kurt Young, DirectorSuper 8

Danny Yunker, Allied DirectorFarmer Brothers Family of

Coffee & Teas

KRHASIF & HIS OfficersBrad Streeter, ChairVista Drive In

Ron Oberg, Chair ElectFreddy’s Frozen Custard &

Steakburgers

Dave Nelson, Treasurer, Immediate Past ChairColonial Steak House

Mike Richey, SecretaryFive Guys Burgers & Fries

Sandra Ward, Immediate Past Chair/Past ChairmanTaco Casa

KRHASIF & HIS Board of DirectorsBob Carmichael, Director, KRHA Chairman

Perkins Restaurant & Bakery

Kim Madison, DirectorBest Western Wichita North Hotel

& Suites

Loren Unruh, Past ChairBest Western Angus Inn

John Arnold, KRHA Chair, ex-officio for SIFRedRock Canyon Grill

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COMPETITIVE RATES ON WORKERS’ COMPENSATION/PROPERTY & CASUALTY INSURANCE- Specialized for the foodservice and lodging industries.- Member-owned workers’ compensation self-insurance fund provides competitive rates.- Full-time insurance agents, as well as claims and loss control specialists on staff.- KRHA contracts with the finest property and casualty insurance carriers available.

MEMBERSHIP BENEFITS& SERVICESADVOCACY- KRHA carefully monitors industry legislation at the state and federal levels of government and ensures our collective voice is heard. Support at the city and county levels is available upon request. - Our registered lobbyist directly represent the interests of our members with the Kansas Legislature and National Restaurant Association lobbyist do so with congress.- Political updates with KRHA’s weekly Capitol News (during session) and NRA Washington Weekly.

EDUCATION AND TRAINING- Workforce development is accomplished through ServSafe Food Safety and Alcohol server instruction and other training programs. Members receive significant discounts on all ServSafe materials.- School-to-career programs and scholarships sponsored by KRHA assist students with career opportunities in the foodservice and lodging industries.

AFFORDABLE HEALTH INSURANCE- Alternatives to meet your objectives and budget including: Traditional Health Insurance Plans, and high deductible plans coupled with Health Savings Accounts, and Limited Medical Indemnity Benefit Plans.- Have your small business rated like a large group by being pooled with all KRHA members. 100% guaranteed acceptance with no pre-existing conditions, and affordable age banded rates.

DISCOUNTS ON CREDIT CARD AND PAYROLL SERVICES- KRHA has partnered with Heartland Payment Systems (HPS) to provide members with the best value in credit card processing available in the marketplace. Local managers, 24/7 help desk, and three-year rate guarantees are standard in the HPS program.- Members receive exclusive discounts on credit card processing, gift card marketing, payrol and tip management services and check management.

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KRHA LEGISLATIVE SUCCESSES The accomplishments of the Kansas Restaurant & Hospitality Association (KRHA) are very impressive. This is due to our members who have taken on the responsibility to support and advocate for our industry.

The KRHA works very hard to represent the members of the Association legislatively. On a daily basis, members of Congress and Kansas legislature consider changing laws and regulations on topics such as immigration, obesity, menu labeling, taxes, and building depreciation. KRHA actively lobbies, on average, 35 bills and monitors another 170 bills of interest to our industry. In 2008, the KRHA and the lobbying team successfully opposed efforts to increase food service licensure fees by $1.7 million dollars, which would have equated to an increase of $300.00 for a business with Gross Annual Sales of $250,001 - $500,000. We also successfully fought a $290,000 increase proposed by KDHE in lodging licensure fees. This would have amounted to an increase of approximately $1,570 for establishments with 200 rooms. In 2009, the KRHA opposed and closely monitored the proposed “Employee Free Choice Act”, also known as the “Card Check” bill.. In 2010, KRHA President & CEO testified on payment options for the recent unemployment tax rate increase that had placed much hardship upon our industries businesses. KRHA defeated the enactment of the sugared beverage tax and the increase of liquor and CMB taxes. Despite the contentious budget debate, the 2011 Legislation Session proved to be successful. Some of the priority bills that passed were: Workers Compensation Reform, Unemployment Insurance Reform, Lodging Fees and Sales

DISCOUNTS ON MUSIC LICENSING- BMI offers KRHA members an ongoing 10% discount and an additional 10% discount for remitting a check within 30 days of annual renewal.- KRHA members receive similar discounts for ASCAP licensing.

DUAL MEMBERSHIP WITH NATIONAL RESTAURANT ASSOCIATION - KRHA retail members enjoy a FREE dual membership in the NRA.- Free industry research services, discounted NRA publications, complimentary NRA Restaurant Show admission, and much more. Visit www.restaurant.org for details.

ADDITIONAL KRHA MEMBERSHIP BENEFITS- Reduce recruitment costs, through JobsOnTheMenu.com and CareerBuilder. Call (877) 513-4867 to start a conversation today.- FREE Annual Membership Directory and Buyer’s Guide - Discounted email marketing service and access to free marketing webinars through Fishbowl.- Discounts on advertising in KRHA publications.

ALLIED MEMBERSHIP BENEFITSIn addition to the above benefits and services, allied members also receive the following benefits:- KRHA member mailing list by email or on a computer disk upon request.- Company name in Allied section of KRHA Annual Membership Directory & Buyer’s Guide.- Political clout dealing with legislative special interests of mutual concern to the restaurant and lodging industries.- Kansas Restaurant & Hospitality Association logo decal to display and use in advertising.- Referrals of products and services to inquiries.

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Tax Provisions. For 2012 a few of our priority issues we were monitoring were: Venue Licensing, Proportionate Drink Pricing Repeal and Background checks on Those to Serve Alcohol. Membership is what gives the industry strength. Allow us to be “Your Voice in the Hospitality Industry” Please make a commitment to do your share. By becoming a member, you help us stay focused on issues that affect your bottom line, and plan for the future. Now is the time to make sure we maintain and continue to grow our membership, increase our involvement with legislative issues, and prepare for the opportunities ahead.

Please think about some of the key issues we are facing in this industry and how you might become involved with the KRHA. We look forward to working with you and thank each of you for your support. If you have any questions and/or concerns, please contact the KRHA office.

EDUCATIONServSafe Food SafetyThe ServSafe program The program blends the latest FDA Food Code, food safety research and years of food sanitation training experience. Managers learn to implement essential food safety practices and create a culture of food safety. All content and materials are based on actual job tasks identified by foodservice industry experts. The Kansas Food Code requires all persons in charge to have knowledge of the food code. The ServSafe Manager class will provide them with this knowledge and students can earn the ServSafe Food Protection Manager Certification, accredited by the American National Standards Institute (ANSI)-Conference for Food Protection (CFP). The person in charge is also responsible for training their staff. One of the best ways to ensure your employees have the information to safely and properly do their jobs is by having them attend a ServSafe employee level training class. The ServSafe program is recognized by more federal, state and local jurisdictions than any other food safety training program, and it is the only program where proceeds go back to support industry education.

ServSafe AlcoholThe ServSafe Alcohol® program prepares bartenders, servers, hosts, bussers, valets, bouncers and all front-of-house staff to effectively and safely handle difficult situations in your operation. Alcohol service involves many risks. Failure to act responsibly could

result in fines, imprisonment, losing your liquor license, increased insurance costs, or losing your business. Prepare yourself to handle these risks with responsible alcohol training from a trusted and experienced source, the National Restaurant Association.

ProStartProStart is a nationwide program for high school students that develop tomorrow’s restaurant and hospitality industry leaders. From culinary techniques to management skills, ProStart’s industry-driven curriculum provides real-world educational opportunities and builds practical skills and a foundation that last a lifetime. ProStart students come to an employer ready to make an immediate impact. They are trained in industry-specific and transferable skills that bring value to the employer. Students will learn with their classmates at school, get their feet wet working in the industry, and have a chance to put their skills to the test in competitions.

For more information on these programs log on to www.krha.org or contact Neely Carlson, VP Education and Training, at ncarlson@krha.org or 316-267-8383.

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SALES TAX EXEMPTIONIf you are not checking your utility bills monthly to insure your restaurant, hotel, or motel is getting the sales tax exemption you have applied for or if you are not aware K.S.A. 79-3606 provides your business the right to apply for sales tax exemption on “all sales of tangible personal property which is consumed in the production, manufacture, processing, mining, drilling, refining or compounding of tangible personal property for consumption in such production, manufacture, processing, mining, drilling, refining, compounding, irrigation and in providing such services,” please keep reading!

A survey was sent out to board members by the KRHA office and two board members responded their utility sales tax exemption had been dropped from their utility bills.

As a result of this information, we have been mentioning these findings in meetings and conversations with members to create awareness. In a meeting with restaurateurs in Salina, several business owners present were not aware of the sales tax exemption on electricity, gas, and water purchases used in food preparation for resale.

The purpose of this article is to create awareness only! If you need the KRHA office will be glad to assist you in obtaining

forms or information you need for your utility sales tax exemption. In addition there are other items that are sales tax exempt you may want to research. For complete and detailed information on this topic, contact the Department of Revenue, Division of Tax Operations at 785.296.3081 to speak with a sales tax exemption attorney specialist.

To print a copy of STATEMENT FOR SALES TAX EXEMPTION ON ELECTRICITY, GAS, OR WATER FURNISHED THROUGH ONE METER, type the following link into your internet browser: certcapture.com/downloads/certificates/KS/Utility.

MUSIC LICENSINGMost restaurant operators play music in their establishments for the enjoyment of their customers. In the case of recorded music, the performance rights are generally owned by one of the performance-rights societies, such as the American Society of Composers, Authors, and Publishers (ASCAP), Broadcast Music, Inc. (BMI) and SESAC, Inc. These societies offer license agreements to commercial establishments for the privilege of playing music composed or performed by those copyright owners whose performing rights these societies hold. The fees charged generally depend upon such factors as whether the music is recorded or live, room occupancy, and whether dancing is permitted.

Restaurateurs can avoid entering into license agreements with the performing rights societies by instead entering into an agreement with a background music provider, such as MUZAK. Such providers enter into agreements with the performing rights societies so that the restaurant operator does not have to pay a fee to the societies. However, the operator can expect, to pay substantial fees to the background music provider. Another way to avoid entering into license agreements with the music licensing societies is by installing a coin-operated jukebox. The restaurant operator, however, cannot charge an admission fee to his or her establishment and the jukebox must be licensed by a licensed operator, such as the Jukebox License Office in New York City (800-955-JUKE or 212-581-0190), which involves a fee.

Copyright Law

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Restaurant operators have often asked if it is possible to be licensed by only one of the societies. The answer is theoretically “yes,” but this may be difficult in practice since it would require that the operator play only the music of one of the societies. Since ASCAP and BMI each have a repertoire of over a million songs, it would be very difficult to play the music of only one society, whether the music played is live or recorded.

If you are playing copyrighted music in your restaurant, you need to pay up—The penalties for not doing so are severe. Under new copyright law (effective Jan 25, 1999), however, some restaurants are exempt from paying royalties on radio and television music only.

ExemptionRestaurants under 3,750 gross square feet (not counting the parking lot) will be exempt from paying royalties on radio and television music only.

Restaurants over 3,750 gross square feet (not counting the parking lot) may also be exempt if they play no more than four televisions, each measuring up to 55” diagonally (no more than one per room), with no more than six speakers total, and with no more than four speakers per room. Another way they may be exempt is if they play radios that have no more than six speakers total, with no more than four speakers per room. For restaurants to be eligible for the exemption, they must not charge a cover fee to see the television or listen to the radio.

Retailers also receive an exemption under the new law. Retailers under 2,000 gross square feet (not counting the parking lot) are exempt; retailers over 2,000 gross square feet (not counting the parking lot) will receive the same equipment exemption as restaurant owners.

Determine how often you play music. Do you have a singer perform at your establishment

once a week? Do you allow dancing on holidays, such as St. Patrick’s Day? Do you

set up for Karaoke on Sundays or any other day? These are just a few examples

of questions you must consider when determining the frequency you play music.

Determine What kind(s) of music you play. Compact Discs. DJs/Dancing. DVDs. Juke Boxes. Karaoke. Live Performances. Music

on Hold. Radio. Tapes. Television.

Contact ASCAP, BMI and SESAC to determine if you need to sign a music licensing agreement. Make sure you cover your bases by calling all three music licensing societies.

Copyright law says that an infringer of a copyright may be liable for: the copyright owner’s actual damages because of the violation and any profits of the infringer attributable to the infringement; statutory damages of $500 to $20,000 per copyrighted work (if the infringement was willful, the court may increase the damages to $100,000). The new law adds a possible new penalty: two times the amount of the license fee if the proprietor did not have reasonable grounds to believe that he/she was exempt. In addition to these damages, the court may award reasonable attorneys’ fees to the prevailing party.

Rate Dispute MechanismEffective January 25, 1999 the law provides for rate disputes with ASCAP and BMI to be heard in 12 circuits throughout the United States. However, the law does not affect disputes with SESAC.

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The short answer to the question above is: Because the law says you

do. But, clearly, some further explanation is needed, as to why. For example, a merchant has to pay to play radio music in his or her store, when playing the radio or listening to

tapes at home or in one’s car is “free.”

The long answer starts with the United States Constitution, which gives Congress the power to grant patents and copyrights. The Copyright Law of the U.S. today gives copyright owners the exclusive right to publicly perform or authorize performance of their works. Generally speaking, public performances are very broadly construed under the law and are defined as performing “at a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered.” Performances at charitable functions are exempt from license or royalty requirements only if the performances have no direct or indirect commercial advantage and if no one involved with the performance, including any of the events’ performers, organizers, or promoters, is paid, and there is no direct or

indirect admission charge. Given the broad scope of the protection given copyright holders and those assigned their rights, anyone whose business in one way or another performs music for its customers or members should be aware that they may be called upon by one or more of the major performing rights organizations to license the performance of copyrighted works in their respective repertories. Buying a license from one performing rights organization, say BMI, does not protect a business from liability from unauthorized performance of songs in ASCAP’s or SESAC’s repertories. A list of places and events at which licensing could be required includes, but is not necessarily limited to: restaurants, bars, clubs and hotels where live or recorded music is played; shopping malls; stores that play broadcast or recorded music; trade shows; conventions; dance studios; skating rinks; private clubs or fraternal organizations; offices and stores that use “music on hold” for telephone customers; sports teams; colleges and universities; amusement parks; bowling centers; and the Internet. The proprietor of the business in which the copyrighted music is performed is liable for any infringement of copyrighted music in his or her place of business. A business person should consult his or her attorney with any questions as to whether the music he or she plans to play publicly is exempt from liability for royalty payments.

Q: I play live music just one night a year, but I am under 3,500 gross square feet and play only televisions and radios the rest of the year. Am I exempt from music licensing fees?

A: No. The exemption covers restaurants that play radio and television music only.

Q: I have a current signed contract with ASCAP to play my televisions and radios, but I meet the square footage exemption under the new law. Can I just stop paying my fees?

A: Most likely not. If you have signed a contract, you must wait until the contract has expired. Once the contract has expired, contact the music licensing societies and let them know that your circumstances have changed.

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Q: Is there anything I can do if I do not like the licensing fee amounts that ASCAP BMI or SESAC demand?

A: Yes. You can challenge the fee in the federal district court in the circuit where you are located. For example, if you live in North Carolina, the circuit court is located in Richmond, VA. That way, you don’t have to travel to New York City to dispute the rate, which was the only available option under the previous law.

Q: I use the patio of my restaurant, but only in the summer. Does this count toward my gross square footage?

A: Yes. If you use the patio area of your restaurant to serve customers even once a year it likely will be counted toward your total gross square footage.

Q: My restaurant is under 3,750 gross square feet. I currently play compact discs in my establishment. Can I continue to play the compact discs and still claim the exemption?

A: No. Just because you paid for the discs does not entitle you to play them publicly. The new exemption just covers restaurants that play radio or television music only. You must stop playing the compact discs to meet the exemption requirements. Or, if you wish to continue to play the discs, you must contact the music licensing societies to determine your licensing requirements.

Q: Do I have to include all of my restaurant space (storage, etc.) when determining if I quality for the exemption?

A: Yes. All space must be included, with one exception: parking space (as long as that space is not used for playing music).

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In light of the June 17, 2002 US Supreme Court ruling, we thought it would be beneficial to our members to review the basics of “tip reporting”. In effect, the

US Supreme Court gave the IRS more latitude in assessing payroll taxes for underreported tip income, especially cash tips. Although tips are paid to your

employees, you as the employer have certain obligations to ensure that the related payroll taxes are paid.

If you have employees that are expected to receive more than $20 per month in tip income, your employees are required to report the tip income to you no less than monthly. Employers can however, require more frequent reporting. IRS form 4070

and 4070A can be used.

As an employer, you may also be required to file the IRS Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. The three criteria for

determining filing are:

1. You employ more that ten employees on a typical day2. You serve food and drink for on premises consumption, and

3. Tipping is customary in your establishmentIf you are a Form 8027 filer and the total tips do not equal at least 8% of sales, you

need to be familiar with “tip allocation”. This simply requires you to allocate tip income to each employee so that their tip income is at least 8% of his or her sales.

Although you are required to withhold all applicable taxes and match FICA tax on reported tips, as the employer, you are not required to withhold taxes on the

allocated tips.

The current IRS position seems to be to go after the employers only. They are not assessing the employees. In light of the current US Supreme Court ruling, the IRS

can make employer assessments as far back as 1988. The one way to help safeguard your business in the future is to sign a TRAC agreement with the IRS.

EMPLOYER TIP-REPORTING BASICSWHAT YOU NEED TO KNOW IF YOU EMPLOY TIPPED WORKERS

TRACTip Reporting Alternative Commitment

1 Regularly educate employees about tip reporting .

2 Set up certain procedures to make sure servers, buspersons, and others report their credit card and cash tips to their employers.

The one reason an employer would want

to sign a TRAC is that the IRS will not assess you for payroll taxes unless they have first examined your

employees.

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EducationEducating your employees seems to be the most important thing to do. Employees need to understand that 100% of their tips are taxable and must be reported. Employees that underreport tips are subject to IRS examination, which in turn makes you and your business vulnerable to the IRS. Employee’s failure to properly report tip income to their employer can make them subject to employer disciplinary action, including termination. An employer should establish adequate tip-reporting procedures for your business. These should include procedures for direct and indirect tipped employees. You should include frequency of reporting, format for reporting, cash tips and credit card tips, tip-outs, etc. The employee should sign the report before submission.

EMPLOYEE TIP-REPORTING BASICS:WHAT YOU NEED TO KNOW IF YOU EARN TIPS100% is the Magic Number: All Tips Are TaxableIf you earn tips, be aware that if you receive more than $20 in a month, all these tips count as income that you must report and pay taxes on. This includes cash tips, tips you receive from others and credit card tips, minus what you tip out to others.The law requires you to report and pay taxes on 100% of the tips you keep after tip-outs. You may have heard the misconception that you only need to report 8% of sales. You can get into trouble if you earn more and do not report.

Keep Good RecordsGood daily records are the only things that will save you if the IRS audits you. Your daily records must show how much you made in cash and credit card tips, the amount you receive from other employees and the amount you tipped-out to other employees.

You Must Report Your Tips to Your EmployerYou should visit with your employer for the preferred form, contents and frequency for reporting tips. This needs to be to your employer no later than the 10th day of the following month. Your employer may require weekly or daily reporting of your tip income.

Not Reporting Tips Is a Big DealIf the IRS audits your tax return and finds out you underreported your tips, you could be facing penalties and interest as well as the underpaid taxes. Falsifying tip income is illegal. You will owe FICAtaxes on the unreported tips. Additionally, the IRS has the right to exam up to three years of back returns. If the IRS suspects fraud, they can go even further back. You could be even facing jail if tax evasion is proven.

The 8% MythMany restaurant employers and employees may have heard the false rumor that tip-earners only need to report tips equal to 8% (or some other such number, such as 10%) of their sales. That is a widespread misconception. The law requires employees to report and pay taxes on 100% of the tips they keep after tip-outs. It is that simple.

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TIP REPORTING BASICSBelow is a sample of Form 4070A taken from Publication 1244 from the Internal Revenue Service. This is an example of what your employees should use to report their tips.

OMB No. 1545-0714 Employer’s Annual Information Return ofTip Income and Allocated Tips

8027 Form

Department of the TreasuryInternal Revenue Service

For Privacy Act and Paperwork Reduction Act Notice, see page 6 of the separate instructions.

Type of establishment (checkonly one box)

Name of establishment

Evening meals only 1

Evening and othermeals

2

Number and street (see instructions)

Meals other thanevening meals

3

City or town, state, and ZIP code

Alcoholic beverages 4

Establishment number(see instructions)

Employer’s name (same name as on Form 941)

Number and street (P.O. box, if applicable)

City, state, and ZIP code (if a foreign address, see instructions)

Check if: Amended Return

Does this establishment accept creditcards, debit cards, or other charges?

1 Total charged tips for calendar year 2009

1

2 Total charge receipts showing charged tips (see instructions)

2

3 Total amount of service charges of less than 10% paid as wages to employees

3

4a 4a Total tips reported by indirectly tipped employees

4b b Total tips reported by directly tipped employees

4c c Total tips reported (add lines 4a and 4b)

5 Gross receipts from food or beverage operations (not less than line 2—see instructions)

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6 6 Multiply line 5 by 8% (.08) or the lower rate shown here � granted by the IRS.

(Attach a copy of the IRS determination letter to this return.)

7 7 Allocation of tips. If line 6 is more than line 4c, enter the excess here � This amount must be allocated as tips to tipped employees working in this establishment.

Check the box below that shows the method used for the allocation. (Show the portion, ifany, attributable to each employee in box 8 of the employee’s Form W-2.) a Allocation based on hours-worked method (see instructions for restriction)

b Allocation based on gross receipts method

c Allocation based on good-faith agreement (Attach a copy of the agreement.)

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief,it is true, correct, and complete.

Date � Title � Signature �

Form 8027 (2009) Cat. No. 49989U

Note. If you marked the checkbox in line 7a, enter the average number of employee hoursworked per business day during the payroll period. (see instructions)

Apt. or suite no.

Note. If you have allocated tips using other than the calendar year (semimonthly, biweekly, quarterly, etc.), mark an “X” on line 6 and enter the amount of allocated tips from yourrecords on line 7.

Enter the total number of directly tipped employees at this establishment during 2009 �

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Note. Complete the Employer’s Optional Worksheet for Tipped Employees on page 6of the instructions to determine potential unreported tips of your employees.

� See separate instructions.

Yes (lines 1 and 2 must be completed) No

Final Return

09 Employer identification number

Attributed Tip Income Program (ATIP). See Revenue Procedure 2006-30

SAMPLE

SAMPLE

This information is provided by the Kansas

Restaurant & Hospitality Association as a

member service and is not intended as

legal, tax or other professional advice. The

Kansas Restaurant & Hospitality Association

strongly encourages readers to consult with

their attorneys or accountants prior to

taking any action based on the information

contained here.

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For More Information» National Restaurant Association website, restaurant.org.» IRS web siteirs.gov» IRS Circular E» IRS Publication 1244» Form 8027 and instructions» National Restaurant Association’s Tip Reporting Education Kit

The IRS has begun a new compliance effort to encourage employers

to file Form 8027, or Employer’s Annual Information Return of Tip

Income and Allocated Tips. This form has been ignored by most

restaurant owners in the past, but now is going to be required by all

food and beverage establishments with 10 or more employees or

their equivalent (more than 80 employee hours) on a typical day. The

IRS will send out notices to those establishments that are believed

to have failed to file Form 8027. They business owner will have

the option to file the form without penalties, or explain why they

believe they should not be required to file it. The IRS will investigate

and follow up with those who opt out, to decide if they should be

required to file this form. Always make sure that you are filing all the

necessary forms with the IRS to avoid having to pay any penalties.

Below is an example of Form 8027, and you can download a copy at

irs.gov/pub/irs-pdf/f8027.pdf.

Our members only section is now available at krha.org! This section

provides you with KRHA access to quality information, money-saving programs

and the ability to purchase training and educational materials at a discount. For help logging-in, contact Lisa Graham at

316-267-8383 or lgraham@krha.org.

Members Only

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January 16 & 17KRHA Legislative Affairs Conference

Taste of Kansas Luncheon 11:30 am-1:30 pmAnnual Member Meeting 1:45 pm

Ramada Inn, Topeka

March 21KRHA Insurance Board of Directors

9am-12pmMarriot, Wichita

KRHA Association Board of Directors1pm-3pm

Marriott, Wichita

March 25Kansas ProStart Student Invitational

DoubleTree by Hilton, Wichita

April 9GKCRA Board of Directors Meeting

2:30PM KC CVA Office

April 17-18NRA Public Affairs Conference

Washington, DC

April 19-21National ProStart Student Invitational

Baltimore, MD

April 21-22MRA Board of Directors Meetings

Sheraton Suites – Plaza, Kansas City, MO

April 29Hospitality Day at the “K” -Royals Tailgate & Game

Kauffman Stadium

May 13Hit ‘em & Hold ‘em PAC Golf and Poker Tournament

Firekeeper Golf Course, Mayetta, KS

May 18-21NRA Trade Show

McCormick Place, Chicago, IL

June 20KRHA Insurance Board of Directors9am-12pmJoint Lunch 12pm-1pmKRHA Association Board of Directors1pm-3pmKRHAEF Board of Directors3:15pm-4:15pmRedRock Canyon Grill

August 19Annual PAC Classic Golf TournamentSand Creek Station, Newton, KS

October 7KRHA Insurance Board of Directors10am-1pmMarriot, WichitaJoint Lunch 1pm-2pm KRHA Association Board of Directors2pm-5pmMarriott, WichitaKRHA Evening of Hospitality6pm-9pmHyatt, Wichita

November 7KRHA Executive CommitteeInsurance Board Meeting (Conference Call)KRHA Office

December 5KRHA Insurance Board of Directors11am-2pmLunch 12pm-1pmKRHA Office

December 12KRHA Association Board of Directors KRHAEF Board of DirectorsLunch 12pm-1pm1pm-3pmDoubleTree by Hilton, Wichita

2013 CALENDAR OF EVENTS

15HOSPITALITY

I n s u r a n c e S e r v i c e s

Platinum

2013 ANNUAL SPONSORS

ContributingDr. Pepper Snapple Group

Hospitality Management Systems / MICROSRemote Video of Kansas City

Silver

Tina CoxVice President Risk Managementtcox@krha.org

Neeley CarlsonVice President Education & Trainingncarlson@krha.org

SUPPORT STAFF

EXECUTIVE TEAM

Karie BellAccount Managerkbell@krha.org

Dave BelvinLoss Control Managerdblevin@krha.org

Bob ChambersMember Services Representativebchambers@krha.org

Rich EwenMember Services Representativerewen@krha.org

Lisa GrahamMarketing & Communications Managerlgraham@krha.org

Christine HanakaAccount Managerchanaka@krha.org

Karen HrdlickaClaims Specialistkhrdlicka@krha.org

Hannah NighswongerMarketing Representativehnighswonger@krha.org

Jeff RichardsMember Services Representativejrichards@krha.org

Anna SadlerAccounting Assistantasadler@krha.org

Shannon WilkinsonAccounting Assistantswilkinson@krha.org

Ron & Julie HeinLegislative Counselrhein@heinlaw.com

Adam MillsPresident & CEOamills@krha.org

Sheila ThomasVice President Financesthomas@krha.org

3500 N. Rock Rd. Bldg. 1300Wichita, KS 67226Phone: 316.267.8383Toll Free: 800.369.6787Fax: 316-267-8400ksrest@krha.orgwww.krha.org