It can be either. It varies from family to family and crew to crew depending on the business and more importantly exactly how much knowledge the boss has of the underling's doings.
Per the Pistone book, everybody lies about what they make and as long as the superior is getting a reasonable amount -i.e enough to make his own payments upwards he may not care too much. If things take a turn for the worse or if someone is caught lying there could be a big problem.
"When the snows fall and the white winds blow, the lone wolf dies but the pack survives."
Winter is Coming
Now this is the Law of the Jungle—as old and as true as the sky; And the wolf that shall keep it may prosper, but the wolf that shall break it must die.
As the creeper that girdles the tree-trunk, the Law runneth forward and back; For the strength of the Pack is the Wolf, and the strength of the Wolf is the Pack.
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