These are tips that your employer is required to pay to you if you work in a restaurant, cocktail lounge or similar business. The normal calculation is to first subtract the amount of reported tips of all employees from 8% of the total food and drink sales and then you get a part of this difference. The rough idea is that you deserve your share of 8% of the establishment's total food and drink sales. The rate might be lower than 8% if the employer has approval from the IRS. Ask your employer for the exact calculation of your allocated tips. You must report your allocated tips unless your actual tips are more than the sum of the tips you reported to your employer and your allocated tips.