Signing Bonus 1099-Misc?
02-22-2017, 06:56 AM
#12
Gets Weekends Off
Joined APC: Oct 2016
Posts: 336
Originally Posted by Lvlng4Spd
With the 1099 you are adding un-taxed income at the end of the year to your total income. The taxes on it have to come out of somewhere, and it does depend on your situation. Did you claim a lot of exemptions on your W-4?
My airline adds the bonuses into our pay, from everything I've seen, and are taxed right away. In that situation, paying more tax in the end is usually a product of what you claim, deduct, your bracket, etc..
My airline adds the bonuses into our pay, from everything I've seen, and are taxed right away. In that situation, paying more tax in the end is usually a product of what you claim, deduct, your bracket, etc..
02-22-2017, 07:13 AM
#14
Happy at PDT
Joined APC: Jan 2014
Position: EMB-145 CA
Posts: 983
Originally Posted by No Lies
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.
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...
02-22-2017, 07:30 AM
#15
Gets Weekends Off
Joined APC: Feb 2016
Posts: 2,559
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.
02-22-2017, 08:27 AM
#16
Layover Master
Thread Starter
Joined APC: Jan 2013
Position: Seated
Posts: 4,310
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 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.
02-22-2017, 09:31 AM
#17
New Hire
Joined APC: Jan 2017
Posts: 25
Originally Posted by Lvlng4Spd
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...
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...
02-22-2017, 11:01 AM
#18
Gets Weekends Off
Joined APC: Feb 2015
Posts: 591
Originally Posted by HighFlight
That's pretty damn funny. You have no idea to whom you are talking to about taxes. For all you know, he's a millionaire and pays more taxes per year than you make.
02-22-2017, 11:58 AM
#19
Happy at PDT
Joined APC: Jan 2014
Position: EMB-145 CA
Posts: 983
Originally Posted by PotatoChip
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 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.
02-22-2017, 11:59 AM
#20
Happy at PDT
Joined APC: Jan 2014
Position: EMB-145 CA
Posts: 983
Originally Posted by Mil2Cil
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?
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