Latest update!!!
Profit sharing distribution has been postponed indefinitely!
Due to SEC and DOT investigation; all UA funds and assets has been frozen by government!!!
Regular payroll checks will be distributed as scheduled, based on UPA 2012 rate; TA 2016 implementation has been postponed until further notice.

US Gov. investigation of UAL
Source:
US GOV SEC

Incorrect link (something from "The Simpsons"?). Here's the correct one.

US GOV SEC

I am very familiar with the letter.

The single most important point of the letter, which was obviously not as clear as intended, was that by combining Profit Sharing with the normal pay unintended consequences are brought into play regarding the normal pay portion of the check.

If a pilot were to defer 100%, all the profit sharing would go in. The taxes due for the profit sharing (FICA and small FED and State) could wipe out the entire "normal Pay" portion of the paycheck.

If that happens, there might not be enough left over for pesky things like mortgage payments and other automatic deductions.

Hmm, ALPA sure would have egg on their face if only that were true.

Not sure what you mean.

Are you saying this wasn't clear?
As a result, if you elect 100% of your profit sharing payment to go into the PRAP, you will actually get 100% of your profit sharing payment into the PRAP. But you will still owe the FICA taxes on that contribution so, instead of being held out of the profit sharing payment as in the past, those taxes will come out of your regular pay. In other words, if you elect 100% of your profit sharing payment to go to the PRAP this year, your regular March 1 take-home pay will be reduced.

Yes I get that but was responding to the post about combining profit sharing into regular earnings paid out March 1. The IRS is going to get their take no matter when you get - separate check or combined

Absolutely.

The only question is where their money comes from. From the PS if deferral is less than about 65% or from normal pay if more than that.

I am sure there are many that didn't read the email and will be shocked at a smaller than usual paycheck

Would hate to make odds on payroll doing this correctly. This will include two different tax rates, 3 PRAP contribution sources and a potential reconciliation of past LTD premium and imputed income issues, not to mention the new pay rates and new LTD rates.

I was shocked--SHOCKED!--that the first link wasn't the Rickster. Who has the audacity to throw such a slight towards Rick?

Me, too. That's why I had to make it right.

As I recall the pre-merger United use to issue a separate check for profit sharing and none of this was an issue. Did the pre-merger CAL include profit sharing in the monthly paycheck?

Maybe somebody should call OM - he'll shed some light on it and get it fixed.