Bonus repayment
 

So I have a question on repaying the bonus if you were to leave in the first year.

Say someone starts class in May. They get their bonus whether it be FO or DEC. I assume the taxes are withheld right away. So just for an example let’s say you qualify for the 45k bonus, let’s say your actual check is 30k.

Now you leave in say March the following year. Does envoy want a check for 45k? Or do they want a check for whatever the amount your check was after taxes?

I think they want both your arm, leg, neck, and their money back.

His real name is rumplestilkens however.

Based on a friend’s experience, they want the entire amount back. In this case $45,000.

They will get in touch with you several weeks or months after you resign to demand the bonus back. You will be responsible for the full amount. You can work it out on your tax return next year to get the difference in taxes back.


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Any terms on the repayment? Is it more like Rooms to Go with zero interest until 2025 or more mafia style, breaking your legs this Friday if we don’t get paid!

He mentioned it was easy to work with Accounts Receivable at Envoy. He didn't mention terms, but did say he had to pay back bonus plus the 50% of the uniforms costs that envoy paid.

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Where you going

I’m not anywhere yet. Trying to figure out what the right move for me is.

Got couple of friends applying somewhere else, I’m still deciding.

Great to see others leaving so I don't have to. Just not in the mood to go out and beat the bushes for a better job right now.

I’m staying forever. Why put in any effort to find something that’s better?

Well, for most people the answers seems to be "I'm going to flow in 1-12 years anyway, and the 175 is easy to fly sooooo...."

Just like those bitter old Lifers.

My hope is if I came to Envoy I would get hired at a major way before my flow time came up and hopefully inside of 2 years so I may be looking at bonus repayment.

Or you could reject the bonus so you owe nothing.

Which would be a silly thing to do. If it does indeed take longer than 2 years, you'd have forfeited a lot of money. Better to take the bonus, put it away and repay if necessary.

Also, if one is here for more than a year but less than 2, you don't have to pay back the full amount.

You could take the money and out it into savings or a money market account that earns interest. That way if you leave you could pay the money back and only be out the taxes. Moving on to a major in two years could be tough to do, unless you already have experience.

Yeah I all ready have a fair amount of experience just not enough for the majors yet.

So if you leave before 12 months you owe it all back. If you leave between 13-24 months then you pay a prorated amount.

How are there lifers at Envoy? Refusing the flow? Discipline holding them back?

The vast majority of lifers are fantastic to fly with, and their choice to stay has nothing to do with discipline. Picture being in an era where you had to deal with 9/11, the age 65 increase, SARS, and the global economic downturn. Add all of that in with how AA's first-year pay was, a wife, kids, mortgage, and these guys couldn't afford to go to AA. The lifers are making decent coin at Envoy, and for many of them, the pay cut, going back to reserve, and commuting to another base for an extended period wasn't worth it for them.

Bonus repayment
 

About 200-275 CA at Envoy are lifers. Basic range of 4-12yrs remaining before retirement.

Why do they not move on?

Fear and Anxiety:

1. Learning new aircraft
2. Becoming an FO again, hate the thought of not being a CA.
3. Commuting
4. Forced budgeting for 1-2 yrs- due to lower pay at the majors for 1-2yrs.
5. Current Seniority-QOL: thinking majors can not offer the same comfort (or seniority QOL)
6. Current earnings of $100K-$125K sufficient/ until retirement & current lifestyle (no a sense of leaving money at the table)


No particular order above.

They will want the full amount back. BUT, what they are SUPPOSED to do is issue you an adjusted W-2 reducing your income for the affected tax year by your bonus amount.

You would then file that adjusted W-2 the next time you do taxes if in a different tax year, and get a refund of the taxes paid. If you haven't filed taxes yet for the year of the bonus, then it doesn't matter because you will just file the adjusted W-2.

When they come knocking for their money, you should negotiate repayment only on the condition of issuing you an adjusted W-2 immediately. If you need to set up a payment plan, then that's a little harder.

Thanks that’s a great answer. Makes sense.

So can you just give the uniforms back instead? 😬