Sign on Bonus
08-15-2019, 12:07 PM
#22
Line Holder
Joined APC: Sep 2018
Posts: 71
Originally Posted by Jmacs
My understanding was they cut you a check for the full amount before your class date
08-15-2019, 04:48 PM
#23
Gets Weekends Off
Joined APC: Aug 2009
Posts: 511
I will add a little information to this thread since it keeps coming up.
The bonus money (22,100 - 50,000 depending on the hours you have) has to be paid out before you start class at C5. It is not in the current Pilot Contract so this money is paid to you before you are an employee. No money is withheld for taxes either, so you get the full check of 22,100 / 50,000 delivered to your mailing address right before the first day of school.
The bonus money (22,100 - 50,000 depending on the hours you have) has to be paid out before you start class at C5. It is not in the current Pilot Contract so this money is paid to you before you are an employee. No money is withheld for taxes either, so you get the full check of 22,100 / 50,000 delivered to your mailing address right before the first day of school.
08-16-2019, 07:32 PM
#25
Line Holder
Joined APC: May 2019
Posts: 40
Originally Posted by jacburn
I will add a little information to this thread since it keeps coming up.
The bonus money (22,100 - 50,000 depending on the hours you have) has to be paid out before you start class at C5. It is not in the current Pilot Contract so this money is paid to you before you are an employee. No money is withheld for taxes either, so you get the full check of 22,100 / 50,000 delivered to your mailing address right before the first day of school.
The bonus money (22,100 - 50,000 depending on the hours you have) has to be paid out before you start class at C5. It is not in the current Pilot Contract so this money is paid to you before you are an employee. No money is withheld for taxes either, so you get the full check of 22,100 / 50,000 delivered to your mailing address right before the first day of school.
Put it in a high yield savings account... laughable but you can make about 2,300 bucks on a 50k DEC check over two years with no risk. That’s what I’m doing... dream job might call me before the warden lets me out
08-17-2019, 08:09 AM
#26
Line Holder
Joined APC: Feb 2019
Posts: 28
Originally Posted by round2
Put it in a high yield savings account... laughable but you can make about 2,300 bucks on a 50k DEC check over two years with no risk. That’s what I’m doing... dream job might call me before the warden lets me out
08-17-2019, 08:38 AM
#27
Gets Weekends Off
Joined APC: Aug 2017
Posts: 344
Originally Posted by McGpilot
Is that after you pay 20k in taxes on it?
The bottom line is the money should be put somewhere liquid yet remain untouched for the appropriate duration. Half the money isn't yours until the end of the first year (the clock starts after you complete IOE, not DOH) and the remainder is yours after two years. Until then, you're on the hook for the taxes and repaying the appropriate amount and chasing down the tax man for a refund on the amount returned should you decide to leave early.
Alternatively, you could have a business with accrued expenses and write those off against the bonus income (one of the perks of getting this bonus prior to becoming an employee as a 1099 vs a W2) to reduce your tax liability but most pilots don't have that option.
08-17-2019, 11:01 AM
#28
Porco Rosso
Joined APC: Apr 2018
Posts: 2,522
Originally Posted by njd1
The last time it made sense to put money in a savings account was the mid 80s when interest rates were 8%+. Most "high yield" savings accounts are in the 0.25-0.5% range at the moment. At that rate you might as well stuff it in your mattress.
08-19-2019, 04:47 PM
#29
Gets Weekends Off
Joined APC: Apr 2018
Position: E170 CA
Posts: 138
Originally Posted by njd1
The last time it made sense to put money in a savings account was the mid 80s when interest rates were 8%+. Most "high yield" savings accounts are in the 0.25-0.5% range at the moment. At that rate you might as well stuff it in your mattress.
08-20-2019, 10:04 AM
#30
On Reserve
Joined APC: Jan 2019
Posts: 18
Originally Posted by njd1
The last time it made sense to put money in a savings account was the mid 80s when interest rates were 8%+. Most "high yield" savings accounts are in the 0.25-0.5% range at the moment. At that rate you might as well stuff it in your mattress.
The bottom line is the money should be put somewhere liquid yet remain untouched for the appropriate duration. Half the money isn't yours until the end of the first year (the clock starts after you complete IOE, not DOH) and the remainder is yours after two years. Until then, you're on the hook for the taxes and repaying the appropriate amount and chasing down the tax man for a refund on the amount returned should you decide to leave early.
Alternatively, you could have a business with accrued expenses and write those off against the bonus income (one of the perks of getting this bonus prior to becoming an employee as a 1099 vs a W2) to reduce your tax liability but most pilots don't have that option.
The bottom line is the money should be put somewhere liquid yet remain untouched for the appropriate duration. Half the money isn't yours until the end of the first year (the clock starts after you complete IOE, not DOH) and the remainder is yours after two years. Until then, you're on the hook for the taxes and repaying the appropriate amount and chasing down the tax man for a refund on the amount returned should you decide to leave early.
Alternatively, you could have a business with accrued expenses and write those off against the bonus income (one of the perks of getting this bonus prior to becoming an employee as a 1099 vs a W2) to reduce your tax liability but most pilots don't have that option.
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