Bonus Tax Question
 

Hey Guys,

Haven't gotten my bonus yet, just curious as to what the tax rate on it is? Or whatever the deposited value is?

Thanks!

The new hire bonus? Comes in between completion of the checkride and completion of IOE. I think after taxes it was like 13,626. Can vary depending on how you have your taxes taken out.

Bonuses are taxed at 25% rate. Of course that's all adjusted when you file your taxes.

Does it come separately or with the normal pay on the 20th?

It can come out at either the 5th or 20th. Depends on when the process the bonus


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Best I can figure with pilot math, they withhold about 35% of the bonus to protect the innocent. I took my normal cumulative withholding percentage for taxes (~16% rounded) from my guarantee pay then subtracted that amount from total deductions. I then subtracted uniforms from total deductions. I then divided this resulatant number by the signing bonus amount to figure ~36% rounded withheld from the bonus.

I'm working with the assumption that per diem is not taxed (fairly certain it is not).

I don't know if this is how they actually figure the withholding on the signing bonus. It just seems like 36% is withheld after doing my brand of figuring.

Per diem is only taxed when collecting it in your base. Don’t know when that happens but I know it does.

Per diem is taxable only if you do day trips aka begin and end in base the same day.

Does that include training per diem?

Taxes are WITHHELD at a 25% tax rate. The actual tax you pay at the end of the year is based on your total income for the year.

Semantics... Yes that's correct but the meaning is the same.

I had much more than 25% withheld. Guess I'll make a phone call and see what's up.

Its roughly that, do you pay state taxes as well? The state will get their share also. Don't forget City of Dayton got their share as well.

Dayton doesn't get my money any more! :p

All I know is: taxes suck.

If they withheld too much I'll get it back when I do my 2018 taxes. No problemo. I'm just not a huge fan of interest free lending to Uncle Sam.

When did you get them to stop taking those taxes, the city of Dayton that is? How did you go about stopping that?


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For RTP do they pay you the bonus first and you pay taxes on it before using it at the flight school, or do they pay the school directly?

Last year we all got physical checks either handed to us, or mailed to our home address. That may only apply to the RTP guys/gals since we received our bonus earlier than a normal hire.

It's a municipal tax that should only be paid while working in Dayton. Move on from Dayton and the Dayton taxes should stop. If not, I would make a call or email to get it stopped.

Bonus Tax Question
 

I am technically still Dayton based in July, but I haven't seen Dayton since April and I don't even live there.


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That explains it, but I would see if it could be changed.

Can't speak for everybody, but RTP signing bonus seems to be paying out just like every other signing bonus around 90 days and direct deposit on 5th or 20th along with your normal pay.

Not sure about the payments on the fixed wing training. I assume they pay the school directly from what I've heard from others.

They've probably updated the RTP contract, my bonus was paid after the IPTs or oral, can't remember exactly, but it was definitely before our Sims/PC ride.