That's a common tactic and yes, it does get reported if it's systematic (repeated by the same individual.) FEC reports would easily catch that.
Just like withdrawing $9,999.99 from a savings account repeatedly every month. If you think you're side-stepping the AML laws by taking out less than $10k all the time, think again.
Interestingly the FEC does NOT appear to have caught it wrt this Dem rep in question, even though he has many $199 contributions from the same source.