I know back as a busboy in the '70's the servers that worked the section I bussed had to give me 10% of their tips for the shift. For me, that 10% was included in box 1 of my W-2, and I don't recall anything ever being in box 7 or 8 of my W-2. I think that's because I was paid minimum wage while the server's were not. So the servers were subject to that "allocated tips" minimum rule, while I was not. Besides, my 10% cut would never come close to any minimums anyway. But my point is, as a busboy I was taxed on the cut of the tips I received. I can only assume the servers were not taxed on what they passed to me.
