Originally Posted by
waterskisabersw
Math is indeed hard. Especially in public.
If I start Jan 1 and make $100k my first year at swa, at 12% I get $12k, or 1k per month of work (and contributing to profits).
If I start Feb 1 and make $91.667k I make zero currently. Under the pro rate you suggest, I would get 11%, or $10.08k ($917 per month). But if I got 12%, it would be $11k, or the same $1k per month of contributing to profits.
That's why just going off of the W2 is a self-pro-rating (and technologically easier to implement) way of rewarding the value our new hires bring to us.
Under your example, the pilot would get $83 in profit sharing for every month on property while the guy who flew just as much their first month on property made $1000 for their first month on property.
Agreed that this is an issue that needs to be fixed, if not a huge priority.
Like you said. It's harder in public. See if you can have your wife explain it to you.