Contractually yes. I don't think the IRS holds the same view.

I think the IRS views PS as a ‘bonus’, which is why it is taxed at a flat rate for everyone, regardless of withholdings.

Exactly......

It is WITHHELD at a flat rate. My understanding is that it is taxed as ordinary income, no different than any other W2 income. All the reconciliation is done when you file your taxes. There's no separate line on the 1040 for "bonus income."

Correct me if I'm wrong.

correct....

Profit sharing is withheld as a onetime payment. It’s taxed as ordinary income.

Im not meaning to start a fight and understand why DL pilots get PS ( negotiated in BK) but PS is compensation. if you are comparing apples to apples I would say total comp. is a better argument than pay rates alone. I can understand not seeing it as pay because it in not a guaranteed sum of money and I agree there.

Nice to see 89 hour lines and unstacking into every weekend in February.

Its a jelly of the month club. Just a lot of jelly for a lot of months....this year. I don’t want to get into personal finance or budgeting discussions but thinking of it as part of your pay is risky at best. Yes, it is technically paid by the company to me so it is part of my compensation. I sure won’t be using it as part of my monthly or annual budgeting.

Others can make the argument better than I, but... PS is an at-risk, negotiated benefit. Yes, it was negotiated during/around BK, though not as a direct replacement for the loss (theft) of the Pension, but in just about the same breath.

So, just as you would never include any future Pension (when we had one), current 401k, medical benefits, non-rev benefits, or company discount, etc. in your "Pay", PS IS NOT PAY. No mortgage company I've ever heard of will allow you to include any of those as part of your "pay". I absolutely chafe at the company line that our "total compensation" includes PS, much less a plus-up of our hourly rate to somehow include PS. Management would LOVE to include PS as compensation at the table. Pay rates are pay rates, period (if you want to include Intl override & per diem, fine). PS is a negotiated benefit. (and one that the rest of the company employees can thank the pilot work group for).

/end rant