DA Form 5163: Tips, Service Charges & Meals Report (2026)

DA Form 5163: Tips, Service Charges & Meals Report (2026) – DA Form 5163, titled Nonappropriated Fund Central Payroll System – Tips, Service Charges and Meals Report, is an official U.S. Army form used within Nonappropriated Fund Instrumentalities (NAFIs). It tracks tips, service charges, and meals for payroll and tax reporting purposes in Army Morale, Welfare, and Recreation (MWR) activities, clubs, restaurants, and other food and beverage operations funded by self-generated revenue rather than congressional appropriations.

The current version (SEP 2010) remains in use for NAF employees who receive customer tips or where service charges and meal deductions apply. It ensures accurate reporting to the Nonappropriated Fund Central Payroll System and compliance with IRS requirements.

Download the official DA Form 5163 here: https://armypubs.army.mil/pub/eforms/DR_a/pdf/DA%20FORM%205163.pdf

Purpose of DA Form 5163 in NAF Payroll

NAF employees in food service roles (such as servers in military clubs or dining facilities) often receive tips. Managers and custodians use DA Form 5163 to compile data on:

  • Reported tips (cash and charged/credit card)
  • Service charges distributed to employees
  • Meal deductions or allocations
  • Totals for payroll processing

This supports IRS tip reporting rules. Employees must report tips of $20 or more per month to their employer using IRS Form 4070 or equivalent, and the form aggregates this for payroll. NAFIs with more than 10 food service employees may also need to file IRS Form 8027 annually.

Accurate use helps with proper withholding for income taxes, Social Security, and Medicare, while distinguishing between tips (reported by employees) and service charges (treated as wages).

Who Uses DA Form 5163?

  • Custodians/Managers of NAF food and beverage operations on Army installations.
  • NAF Payroll Personnel processing tips and service charges.
  • MWR Activity Managers overseeing clubs, bowling centers, golf courses, or dining facilities with tipped employees.

It applies to U.S. Army NAF employees in CONUS and certain OCONUS locations following DoD 7000.14-R, Volume 13 guidelines.

Key Sections of DA Form 5163

The form typically includes fields for:

  • Installation and Work Center information
  • Pay Period Ending
  • Employee-specific data (if applicable) or summary totals
  • Columns for Tips (reported, charged, total)
  • Service Charges
  • Total Tip & Service Charges
  • Meals (deductions or allocations)
  • Signatures from the Custodian/Manager

It captures both individual employee reports and aggregated data for submission to the central payroll system.

Step-by-Step Guide: How to Fill Out DA Form 5163?

  1. Enter Header Information — Fill in the installation name, work center, and pay period ending date.
  2. Record Tips — Transfer data from employee IRS Form 4070 submissions (cash tips) and credit card/charge tip records.
  3. Document Service Charges — Note any mandatory service charges added to bills and distributed to staff (treated as wages).
  4. Handle Meals — Record any meal deductions or provided meals per policy.
  5. Calculate Totals — Sum tips, service charges, and related amounts.
  6. Review and Sign — The custodian or manager verifies accuracy and signs the form.
  7. Submit to Payroll — Forward to the servicing NAF payroll office by required deadlines (typically aligned with payroll cycles and monthly tip reporting by the 10th of the following month).

Tip: Maintain supporting records (daily tip logs, sales data) for at least 4 years for tax and audit purposes.

Tips, Service Charges, and Meals: IRS and DoD Compliance

  • Tips — Employee-reported income subject to FICA and income tax withholding. Employers must report allocated tips if employee-reported tips fall below IRS thresholds (e.g., 8% of sales in some cases).
  • Service Charges — Treated as regular wages when distributed; not considered tips.
  • Meals — May be deductible or reportable depending on whether they are furnished for the convenience of the employer.

Follow DoD Financial Management Regulation (FMR) Volume 13 for NAF-specific rules. Failure to report properly can lead to compliance issues with the IRS.

Common Mistakes to Avoid

  • Mixing up tips and service charges.
  • Missing monthly employee tip reports.
  • Incomplete totals or missing signatures.
  • Using outdated forms (always use the SEP 2010 version or current authorized edition).
  • Inadequate record retention.

Double-check calculations and cross-reference with sales data and employee Form 4070 submissions.

Best Practices for NAF Managers and Payroll Staff

  • Train employees on timely tip reporting.
  • Use consistent tracking methods (e.g., daily logs).
  • Reconcile charge tips from POS systems with employee reports.
  • Consult installation CPAC/NAF HR or payroll office for questions.
  • Stay updated via official Army sources like armypubs.army.mil and DoD FMR.
  • IRS Form 4070 — Employee’s Report of Tips to Employer.
  • IRS Form 8027 — Employer’s Annual Information Return of Tip Income and Allocated Tips.
  • DA Form 5162-R (or related) — Often used in conjunction for tip allocation worksheets.
  • DoD 7000.14-R, Volume 13 (NAF Financial Management).

For the latest guidance, visit official Army Publishing Directorate or contact your local NAF payroll office.

Download DA Form 5163 PDF: Official Link

This article provides general information based on publicly available U.S. Army and DoD resources. Always consult official directives, your servicing payroll office, or legal/financial advisors for installation-specific requirements and compliance. Policies can be updated, so verify the most current version of the form and regulations.