Of their job?first they pay the morg tithing of their tips earned daily and then out of their paycheck as well??! In reality they are paying the morg double tithing! What kind of morons/ idiots would do this?

I don't see why tips would be treated any differently, I don't believe the IRS does.

income = income, the wages that employees receive comes from the customers anyway, same as tips.

Tips are still income. The IRS treats tips as such. Back many years ago when I used to cook for a restaurant, it was not unusual for servers to hide part of their tip income when reporting to the IRS. I think it's a little harder to do that nowadays. Also servers are generally paid less than the minimum wage. Their tip income is supposed to make up the difference, and usually more besides.

Yep. Minimum wage for servers has been frozen at $2.18 for *decades,* on the grounds that gratuities will make up the difference to minimum wage (or more). This is not always the case. :-/

Tips are reportable income. I try to always pay tips in cash so the server can get around reporting it. Servers usually are not doing that as a career path, except for one restaurant we go to in Frisco. That guy has been there at Half Shells for as long as I can remember. On a busy weekend, he probably makes over $100/hr the best I could figure.

Tips are still considered income.
However, there is a lot of debate about WHEN to do your tithe in the Mormon Church. Straight off the top of everything or 10% off your INCREASE. (Pay all your responsibilities then after?)

I have heard of people tithing off of monetary gifts, prize winnings, allowances, etc.

I never viewed that as income. I considered them blessings. I taught my kids to give IF THEY WANTED TO, but my ex tried to force the kids with a tithe box.

RMM

Yes, both are income, so you add them together and tithe/pay taxes on the whole.

Some businesses require that employees report how much they made in tips each day, so that total can be added on to their wages, and then taxes withheld on that combined amount on their paycheck. In practice, I think most way under-report their tip amount.

If they pay on both their (reported) tips, and then on what their paycheck says they had in both combined tips and wages, then yes, they are tithing twice on that reported tip amount.

How about my mother and father that were such upstanding TBMs they paid tithing all through their lives and then -- come retirement time paid tithing on their retirement benefits. I.e. that's double tithing on the same money.

Then they get hit up on their death bed for a generous endowment to be made to the church as part of their will and trust. Even my TBM siblings were pretty infuriated over that bit of inheritance tampering.

In a typical job that gets tips, they're paid a nominal hourly rate (less than $5/hour), then get to keep the tips, or a portion thereof. So in a work week, they may get $100 in wages, but another $500 in tips. So if you're going to pay tithing on it, they got paid $600 and tithe $60.

No double tithing at all.

That's not to say there's no such thing as double tithing.

1) gifts. If you receive a gift from a tithe paying mormon, they already paid tithing on it. Say your uncle gives you $100. In order to earn $100, you uncle had to make $111 (plus tax). So tithing has already been paid on it. If you pay tithing on the $100, the church has made $20 on the $111.

2) retirement. In a typical 401(k) plan, you put money in when you get paid. But if you pay tithing on gross, you've already taken that into account. E.g., you make $100k/year, pay $10k tithing and put $10k into a 401(k). Years later, you withdraw the $10k. If you pay tithing on the withdrawal, you're paying tithing on something you've already paid tithing for.

Please read this:
http://www.irs.gov/taxtopics/tc761.html

Employers are required to collect from the employee how much their tips were, and then the employer must:
"When you receive the tip report from your employee, use it to figure the amount of social security, Medicare, and income taxes to withhold for the pay period on both wages and reported tips. You are responsible for paying the employer's portion of the social security and Medicare taxes. You must collect the employee's portion of the social security and Medicare taxes and the federal income taxes."

In your example, the employees pay check would be $100 in wages, but taxes and SS are withheld on $600 (or the entire $100 paycheck goes to taxes, etc.).

From the original question, if someone paid tithing on both the amount that taxes were withheld from as listed on their paycheck ($600) and their tips ($500) then they are tithing twice, because the $500 in tips is part of the $600 on their paycheck.

No. In your example, the tithe payer would be acting like he's getting paid $1100. But what tithe payer does that.

In reality, they would get a statement from the company saying $600 and they would pay $60.

(I believe) in Washington state... there's a long-time ruling that tips don't count as to min. wage; IOW, employers are still required to pay it regardless of tips.

Washington & Vermont: two of the most liberal states in the U.S.