Originally Posted by
tr4a
The Company pays the taxes for passes for immediate family members. The other passes and taxed via the SWAG points as stated above. The cost (tax) is about $12-15 per pass.
Imputed income is also used for Loss of License insurance. If you opt in for the tax-free LOL, you pay the tax on the company paid benefit. This will make the LOL pay tax-free. It shows up as Imputed Income.
There are no taxes for immediate family members flying on passes currently. That exemption might go away in the future but there are no taxes for the company to pay.