Compass updates
12-01-2015 | 07:43 AM
#8741
Gets Weekends Off
Joined: Jan 2014
Posts: 244
Likes: 0
For the new hires this is awesome. For those that have been here a couple/few months they are better off just taking the $10K bonus.
I ran the numbers and even if you had 95 hours of credit a month for 8 months straight you'd still make less with the new $35.81/($36.25 in Jan?) pay. And as we become fully staffed those critical trips won't be as common.
So I'm glad they did this, it's awesome to see pay going up.
I ran the numbers and even if you had 95 hours of credit a month for 8 months straight you'd still make less with the new $35.81/($36.25 in Jan?) pay. And as we become fully staffed those critical trips won't be as common.
So I'm glad they did this, it's awesome to see pay going up.
Last edited by pilotwithnoname; 12-01-2015 at 08:02 AM.
12-01-2015 | 08:13 AM
#8742
Gets Weekends Off
Joined: Oct 2005
Posts: 955
Likes: 0
From: 737 Right
Personally, if I knew I was going to receive a bonus that would be withheld at an artificially high rate, I would change my withholding status (at least temporarily) to divert more of that money to my checking account in lieu of the US Treasury.
(*Personal opinion, NOT tax advice.*)
In any case, a good improvement for Compass pilots.
12-01-2015 | 08:23 AM
#8743
Banned
Joined: Sep 2015
Posts: 519
Likes: 0
This would only be true if you were already near the upper tax bracket limit, and the bonus pushed you over said limit. The tax brackets are based on total income, not monthly, and you only pay higher taxes in any given month if you hit that higher bracket, and would CONTINUE to pay the higher rate for the rest of the year.
To clarify, the bonus is taxed as ordinary income. However, a higher percentage of taxes may be withheld on the bonus check because the higher check amount indicates a higher percentage based on the IRS withholding tables. Any over/underpayment of taxes will be trued up when you file your return. Whether or not you receive a refund depends on a lot of things. (i.e. withholding status, other income, exemptions, deductions, etc.)
Personally, if I knew I was going to receive a bonus that would be withheld at an artificially high rate, I would change my withholding status (at least temporarily) to divert more of that money to my checking account in lieu of the US Treasury.
(*Personal opinion, NOT tax advice.*)
Personally, if I knew I was going to receive a bonus that would be withheld at an artificially high rate, I would change my withholding status (at least temporarily) to divert more of that money to my checking account in lieu of the US Treasury.
(*Personal opinion, NOT tax advice.*)
12-01-2015 | 08:32 AM
#8744
Gets Weekends Off
Joined: Oct 2005
Posts: 955
Likes: 0
From: 737 Right
This would only be true if you were already near the upper tax bracket limit, and the bonus pushed you over said limit. The tax brackets are based on total income, not monthly, and you only pay higher taxes in any given month if you hit that higher bracket, and would CONTINUE to pay the higher rate for the rest of the year.
12-01-2015 | 08:41 AM
#8745
Gets Weekends Off
Joined: Jul 2013
Posts: 12,548
Likes: 1,158
It's amazing how many people don't understand how they are taxed. If I had a dollar for every time a new Captain complained that he was actually taking home less since he is in the higher bracket now, I'd probably have to pay the government 60% taxes.
12-01-2015 | 08:53 AM
#8746
Line Holder
Joined: Apr 2015
Posts: 82
Likes: 0
Has anyone called scheduling and see if they are offering hotel rooms yet?
12-01-2015 | 08:56 AM
#8747
Banned
Joined: Sep 2015
Posts: 519
Likes: 0
No, I understand the terms well enough. But when I was replying to you before, I was thinking about my last bonus, which was paid at a flat rate, therefore it is paid separately from regular pay, and not subject to the Federal weekly/biweekly/monthly tables. Now I see you were talking about a bonus being taxed as regular wages, which will cause taxes for a pay period to jump. Sorry for the confusion.
12-01-2015 | 10:24 AM
#8748
Gets Weekends Off
Joined: Feb 2007
Posts: 3,045
Likes: 1
From: FO
Acutually there are two ways they can do this. If it is paid with your regular wages, it will be taxed as ordinary income based on the IRS tax withholding tables.
If it is paid on a separate check it will be taxed 25%.
Everyone settles up at tax time in April.
Why Your Bonus Is Taxed So High - Business Insider
If it is paid on a separate check it will be taxed 25%.
Everyone settles up at tax time in April.
Why Your Bonus Is Taxed So High - Business Insider
12-01-2015 | 10:27 AM
#8749
Gets Weekends Off
Joined: Mar 2011
Posts: 3,526
Likes: 308
From: 737 FO
Acutually there are two ways they can do this. If it is paid with your regular wages, it will be taxed as ordinary income based on the IRS tax withholding tables.
If it is paid on a separate check it will be taxed 25%.
Why Your Bonus Is Taxed So High - Business Insider
If it is paid on a separate check it will be taxed 25%.
Why Your Bonus Is Taxed So High - Business Insider
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