Has anyone had to pay back the bonus? How does that work after the taxes have been taken out?

Do you have to go into the hole to pay back the full thing and wait for the IRS to pay pack after a corrected W-2? Thanks!

There are no exemptions on the W4 for his check for the 15,000. He got the entire 15,000. The check is sent out prior to hire. He will now have to pay his own social security and other fees on his taxes this year as well.

You should have put this under C5 as we get paid different on our bonus than most other airlines.

True but if he took extra exemptions on regular pay that could lead to the higher percentage he is paying. The IRS goes whoa...you made x dollars but didn't pay in enough taxes, soc sec. etc.. for your bracket so now pay up.

I believe C5 is taking the lazy way out on this, as they should issue the checks as part of regular income or let them know what to expect when a 1099 is involved. A new hire could then do some math and withhold more on each check via the W-4 to offset it. The 10 employee flight school I did most of my instruction at was kind enough to at least counsel us on how 1099 works. This is where a bonus can become buyer (or taker) beware...

Good posts, Living4Speed. And while many may not view it as such, it is better to owe the IRS than have them owning you, from a financial health standpoint. I am always amazed at the people who are so excited to "be getting $10,000 back from the government" at tax time. They just don't get it.

I claim about 10 exemptions for the sole reason that I do not want a refund. A refund is an interest free loan to the government not adjusted for inflation. I would much rather pay $1000 at year's end than get a $5000 "refund". It's not a refund, you are losing money.
I sinply wanted to know if other airline were including this income in employees W-2's. I knew mine was a 1099, and I expected to be taxed appropriately $3,500. It was more than I expected. Thankfully, I'm not so stupid as to have spent it all.
I do not like the way C5 handles it. I'm not sure why they do it this way, other than it must somehow help their bottom line, likely in how they claim their taxes.
I just wanted to know if all other airlines were doing the same. I was not looking for unsolicited tax advice.

I just got my first of 2 bonus checks from PDT and it was in my paycheck with the rest of my wages and it was taxed as such. Any idea how it's paid back?

Possible but since he emphasized RETURN it's doubtful. Maybe I'm a millionaire too. But since we are all in the regional airline pilot forums that's also doubtful. :)

10 exemptions...that is why you were taxed more than expected. You never paid in enough taxes through regular wages to cover that additional $15,000 in the first place. Not entirely bad as you stated, but that is where the unexpected difference comes from. You were very wise to see the lights of the tax train coming, and yes C5 is saving quite a bit in doing it this way. -Jackson Hewitt :)

Are you speaking of paying it back, if say you leave early?