Don't forget with any bonus there is usually 25 percent taxes taken out off the top. I agree about the referral bonus, how do you split that with the taxes coming out and what if there is a misunderstanding? Only problem is that there is not much motivation on the part of the applicant and the guidelines have to be followed exactly or no bonus.

My buddy said he got taxed at just over 39%. I thought that was crazy, because that's way too high. But he showed me he only got ~10k of the $16,765 bonus. His referral bonus was the same story.

Hopefully he gets the rest back after taxes are done.

That's probably not too far from the truth. What tax bracket is your friend in (or what did he complete on his paperwork)? Without deductions and with a decent income, Federal taxes alone are 30% or so and plus state taxes and other withholdings. Social Security and Medicare withholdings are about 7% (6.2% and 1.45% respectively).

Contrary to popular belief, taxes are NOT taxed at a higher rate than normal. You may pay more in taxes on the bonus, or less - depending if the company uses an aggregate or fixed percentage model, but at the end of the year, it doesn't matter if you were paid all in bonuses or no bonuses at all. It is all taxed the same as income and your overall tax burden for the year is the same.

https://blog.turbotax.intuit.com/inc...-the-irs-8003/

Whether you were given bonuses or the hourly wages are increased, you would pay the same in taxes on the same amount of money made.

That's what I'm suggesting, is that hopefully he gets a refund for the difference after tax returns. If he made 55k this past year, and lived in Charlotte like a lot of our pilots, he should only pay 25% of his total income including state. So taking home just over 41k and change.

What are the guidelines? Just want to ensure my man gets his $$

Don't forget another 7.5% for social security and medicare.

The percentage I got, That includes the FICA. Because of how our taxes are progressive, these are the numbers I got for total percentage being taxed.

12.28% federal
7.65% FICA
4.66% State

Whoever your referral is has to fill out the form BEFORE you apply, then you have to put his name on your application in the appropriate box.

Beyond that, you then have to pass IOE for your referral to get the first half, then stay 90 days beyond that for him to get the second.

Still willing to submit that for you and answer any questions you've got, either now or in training, if you're still looking.

And don't forget, if you fill out the form and your person waits past 30 days to apply, no bonus.