To be clear - I think a contract makes the most sense for a company, it’s just that some of them state specific milestones at which they’re payed (completion of training, e.g.) and wondering if that’s just recruiter speak.

Are you referring to me?

Nope. Just clarifying the question and my thoughts.

Well,....yes, but the lowly regionals are now flying equipment that lists for $40 million. At only a 4% ROI (or cost of capital) that’s well over $100k just in capital expense alone for every aircraft you park - like Horizon did last year. Count in lost business, etc, it starts to add up to a lot more than a pay raise or retention bonus.

Isn't the "baked in" bonuses like what Endeavor is doing just a bait and switch? Yes you're making X per hour, but aren't you really make Y + Bonus, where Bonus is taxed at 40%, in which case you're still earning just base Y when management decides to yank it? Is there somewhere in writing when a pilot signs up that guarantees that the bonus remains with you if and when they decide to yank it for new comers?

At some point this will not have to be explained anymore. Bonuses are not taxed at a higher rate. They do have a higher withholding, but you will get most of it back at the end of the year as long as you are not in the 40% tax bracket.

You're right, I just looked it up. It's not 40%, it's 25% or more depending on the method executed by the employer.

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

Either way, it's not life changing money. Certainly it's not enough to attract a career changer that's making over six figures.

No, no, and NOOOO! (even aside from ignorance over withholding)

Everything is worth more with the bonus INCLUDED in the base rates. It's simple math...

Vacation pay, critical coverage pay, extension pay, scheduled day off pay, Jr Man pay, sick pay, or whatever category of pay your regional has that references the base rate is worth more...in some cases MUCH more.

If you actually do the math, the entire bonus structure actually encourages pilots to NOT work...or work as little as possible because you are paid more PER HOUR the LESS you work when fixed (monthly or annual) bonuses are paid.

Funny, my buddy at Endeavor tells me that the new hourly rate with the bonus baked in forces pilots to work MORE to get paid.

It is not taxed at 25%. The paragraph at the end of your link clearly points this out.

"No matter what method is used to withhold taxes from your bonus at payout, don’t panic. Remember, taxes may be withheld from your bonus at a higher tax rate at payout, but when you file your taxes at tax time your actual tax rate is based on your total taxable income and overall actual tax rate, which may be lower. Depending on your taxable income, actual tax rate, and eligible tax deductions and credits you may get some of the money withheld back in the form of a tax refund."