I applied at Atlas once. Then I read their contract on the imputed income. In 40yrs of life, I’ve never heard of an airline pulling something that shady. If they buy your ticket to work/hotel for being there, that’s the COST of doing business. The pilot is not using the benefit of hotels/travel for personal use, so it’s definitely not income. Seriously, if anyone thinks imputed income is an industry normal, please name some other airlines that are doing the same? Name another company (outside of aviation) that does imputed income to its employees?
One online CPA source says it this way referencing a company-owned car: “When an employee uses a company vehicle for business purposes, the vehicle use is a working condition fringe benefit. This means the value of using the vehicle isn’t included in the employee’s income, nor is it taxed.
But, when an employee uses a company vehicle for personal reasons, you generally must include the value of using the vehicle in the employee’s income. And, you must withhold taxes on the value of the benefit.”
Furthermore, “The IRS defines imputed income as the value of any benefits or services provided to an employee. The value of this cash or non-cash compensation must be considered in order to accurately reflect an individual’s taxable income.
Employees can have income tax withheld for their imputed income or pay the amount due with their tax installment payments. Examples of imputed income are:
Dependent care assistance exceeding the tax-free amount,
Health and dental insurance for non-dependent domestic partners or same-sex partners or spouses,
Basic or group life insurance in excess of $50,000,
Personal use of company or employer-provided car,
Non-deductible moving expense reimbursements,
Educational assistance exceeding the excluded amount, and
Below market rate loans.“
I get it. It’s in the contract and that the company does it but my question is why do the Atlas pilots continue to show up for work of their income is being “imputed” to the point of poverty? At this point, you have to question the decision making of anyone that shows up to work under those rules because it just perpetuates managements ability to keep doing it.
Almost everyone is hiring....
(I don’t work for Atlas, nor do I have a dog in the fight, I just don’t understand why good pilots continue to be shat upon by a company like this?)