After bonuses, how much do regional pilots RE
03-25-2017, 11:21 AM
#21
Gets Weekends Off
Joined APC: Mar 2017
Posts: 451
Originally Posted by HighFlight
No, no one has ever paid taxes based on projected income. That's not how the US tax system works.
03-25-2017, 11:23 AM
#22
Gets Weekends Off
Joined APC: Oct 2009
Position: CFI/II/MEI
Posts: 481
Originally Posted by minimwage4
I'm sure most regional reserves would laugh at this post. Especially the part about passing up an upgrade class... The reason is that most regionals actually use their reserves for their intended purpose. There's only a few reserves, most have lines. If you're on reserve you will be used and abused. My regional basically has no reserve work rules, mostly because you won't be for long. Dont know why Envoy prefers pilots on 2 year reserve rather than giving them lines.
03-25-2017, 11:44 AM
#23
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Joined APC: Oct 2009
Position: CFI/II/MEI
Posts: 481
Originally Posted by HighFlight
No, no one has ever paid taxes based on projected income. That's not how the US tax system works.
The table is inherently based on a projection of income. For most normal salaried jobs, people have a fixed income... little to no variance from paycheck, so the tables are based around that. If you take some unpaid leave and have a $300 paycheck and then the next month pick up over time and get a bonus/profit sharing, etc, and have a $6000 paycheck you will notice the percentage withheld is vastly different. A huge bonus will be overwithheld because they will withhold based on the table that would be commensurate with a much higher income than what you are actually making. Small variances work themselves out, but large bonuses are so over-withheld that they will yield a refund when you file taxes at the end of the year.
03-25-2017, 11:56 AM
#24
Roll’n Thunder
Joined APC: Oct 2009
Position: Pilot
Posts: 3,545
Pay actually categorized as a bonus is required to be withheld at the 25% federal rate no matter what. If you know you have set bonuses coming in a given year you can adjust your withholding on your normal paychecks so that you pay less in income taxes every pay period (thus keeping your money for yourself) instead of giving the government and interest-free loan that they bump back to you as a refund.
03-25-2017, 02:17 PM
#26
Gets Weekends Off
Joined APC: Feb 2016
Posts: 2,559
Sorry, IDK what I was trying to say above, but it was wrong. Yes, monthly fluctuations in pay can make the monthly taxes go up and down, and is sort of a projection of annual pay.
If one is paid a bonus as part of a regular salary, yes, you may pay more taxes annually. It has been my experience that most companies pay bonuses as a separate entitlement, meaning it is withheld at 25% at the federal level, thereby not affecting monthly taxes on ones salary.
Thanks for keeping me straight!
If one is paid a bonus as part of a regular salary, yes, you may pay more taxes annually. It has been my experience that most companies pay bonuses as a separate entitlement, meaning it is withheld at 25% at the federal level, thereby not affecting monthly taxes on ones salary.
Thanks for keeping me straight!
Originally Posted by Bellanca
They look at the federal withholding tables, and withhold taxes per the table.
The table is inherently based on a projection of income. For most normal salaried jobs, people have a fixed income... little to no variance from paycheck, so the tables are based around that. If you take some unpaid leave and have a $300 paycheck and then the next month pick up over time and get a bonus/profit sharing, etc, and have a $6000 paycheck you will notice the percentage withheld is vastly different. A huge bonus will be overwithheld because they will withhold based on the table that would be commensurate with a much higher income than what you are actually making. Small variances work themselves out, but large bonuses are so over-withheld that they will yield a refund when you file taxes at the end of the year.
The table is inherently based on a projection of income. For most normal salaried jobs, people have a fixed income... little to no variance from paycheck, so the tables are based around that. If you take some unpaid leave and have a $300 paycheck and then the next month pick up over time and get a bonus/profit sharing, etc, and have a $6000 paycheck you will notice the percentage withheld is vastly different. A huge bonus will be overwithheld because they will withhold based on the table that would be commensurate with a much higher income than what you are actually making. Small variances work themselves out, but large bonuses are so over-withheld that they will yield a refund when you file taxes at the end of the year.
03-25-2017, 09:16 PM
#29
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Joined APC: Feb 2008
Position: FIRE ALPA
Posts: 3,082
Originally Posted by WMUFlyboy1
I made $73k first year at Endeavor not including per diem but that was with a lot of pick ups
03-25-2017, 09:26 PM
#30
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Joined APC: Sep 2014
Posts: 193
Originally Posted by Avroman
Take home???? Not including tax returns or any other income???? I didn't make that much take home as a captain before the bonus money was paid, and barely more than that after bonus as a reserve captain (take home for the year)... maybe I need several baby mamas and a couple homes.... Or did you have 4 days off a month? $73K Pre deductions I could see from a skilled in base open time guru... Post... I call b.s. for most FO's Maybe after factoring in tax returns, yes but that depends on deductions.
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