or do the taxes get deducted from your paychecks? like when you claim your tips after your shift is over, im assuming they figure that amount and deduct the necessary taxes when you get paid, but im not sure
If you are reporting tips to your employer than they are required to withhold Federal Income Tax on the tips you report.
Large food or beverage establishments are required to keep records and verify the tips reported by the employees. If the percentage of tips reported by an employee falls below a required minimum of percentage of gross sales the employer is required to allocate an additional amount as tips to that employee.
Allocated tips have not had federal income tax taken out so it is important that you keep track of the amount you are reporting to substantiate a smaller amount if needed. (reported on line 8 of W-2)