gazoo34

Hey word did you know your logbook is online, ....bonus money is taxed at a higher rate than regular income. The company figures the rate and it benefits them to tax it at a higher rate.

Stay on the 00 forum and let the big boys talk about the real issues of Horizon.

DrainTheSwamp

Minimum is 25% using the Percentage method, Using the Aggregate method it will be higher. Horizon uses the Aggregate method. Having personally seen one of the 10k bonus checks. $6700 was the payout. Educate yourself.

1. The Percentage Method
The IRS specifies a flat “supplemental rate” of 25%, meaning that any supplemental wages (including bonuses) should be taxed in that amount. If you receive a $5,000 bonus, under this rule, $1,250 (25% of $5,000) goes straight to the IRS. Using this approach, the amount of your bonus, whatever it is, is “singled out” from the rest of your income and taxed directly. Employers frequently choose the percentage method because it’s easy and mindless to tax the entire bonus at a uniform rate. In most cases, this is ideal from your standpoint as the bonus receiver and taxpayer, too. The aggregate method (described below), in addition to being more time-consuming and laborious for employers, can take a bigger tax bite out of your bonus payments.

2. The Aggregate Method
Unlike the much simpler percentage method, the aggregate method is used when your employer pays your bonus (say, $5,000) with your most recent regular paycheck. Then, they determine the normal withholding amount based on IRS withholding tables for the sum of both amounts, subtract what was already withheld from your last paycheck, and withhold the rest from the bonus amount.

The problem with this approach is that instead of taxes being withheld at a flat 25%, and having that 25% rate apply only to the bonus amount, taxes are withheld at what is almost certainly a higher rate on the combined amount of your normal pay and the bonus. The result: a higher overall tax obligation initially for the same amount of income.

Bonus Time: How Bonuses Are Taxed and Treated by the IRS | The TurboTax Blog

Sikorsky38

Interesting. Did you see a print out of the pay statement that showed the taxes being withheld? It is interesting, because if Horizon is giving the $10,000 out 'prior to employment' to avoid the IBT CBA from having ties to it, how do they tax a non employee's check? They should be receiving a check for $10,000.

LAX2MSP

From a memo we got last week... "As some of you have noticed, we are flying a CRJ700 aircraft in the Alaska system again. This aircraft will be flying until early summer. In addition, we will have a CRJ200 flying in the Alaska system for about 20 days starting in mid-February. These aircraft will help Alaska with some last minute needs in their system..."

DrainTheSwamp

You would think that, but they do, and yes I have seen the check but not the statement.

DrainTheSwamp

You would think that, but they do. I have seen the check but not the statement

MrMcgibblets

With QX getting 175's does that mean Skywest is done getting them? Or are they getting more for just pdx since horizons are going to sea?

word302

Everything you quoted has to do with how they are withheld, not how they are taxed. Everyone will pay the same rate on a bonus as they will on any other income. How they are withheld and how they are taxed are totally different calculations.

The aggregate method is actually better because you can control the amount of tax withheld. When you know you have a bonus coming, you can change your withholdings for a month or 2 to give Uncle Sam less of a loan. We do this every year with my wife's bonus.

word302

I'm sorry. Who do you work for again? I have plenty of friends at QX and want nothing but the best for them.

And no, bonuses are not taxed any differently than regular income at the end of the year. Do a little research Mr. big boy.

LAX2MSP

From the same memo...

"We have five additional E175s slated to enter service in the Alaska system over the next few months. Of the five, the first aircraft will enter service in just a few weeks and will help facilitate the repainting of all E175s that are still in the old livery. We plan to have them all repainted by May 2017. The second aircraft will be an Alaska dedicated E175 spare. This aircraft will greatly help to ensure we run a top notch operation even on difficult days. The third and fourth aircraft will be delivered in February and enter service in March. The fifth aircraft – 20th total for Alaska – will enter service in April. Overall, our Alaska fleet will grow by an impressive 33 percent over the next few months. We have a great year ahead of us in the Alaska system."