Employees must report the allocated tip amount as additional income on the Form 1040
unless the employee has records to show that the allocated tip amount was not received.
If the employee includes allocated tip income on Form 1040, the employee pays his
or her portion of the FICA taxes by completing Form 4137 (Social Security and Medicare
Tax on Unreported Tip Income), and filing it with Form 1040. IRS reports the additional
income to SSA for crediting to the employee's earnings record.