AA and Southwest $1K employee bonuses

[eolesen]

Nice try on comparing to Reaganomics. Fed interest rates in the 1980-1982 range were in double digits compared to <4% today. That's a huge differentiator.

I'm glad to see you guys get the bonuses, and hope some of that money not being stolen by the Feds will go into making sure my pension @ AA is fully funded and better protected...

 

[cltrat]

I am curious to see what the tax rate is on it compared to say our profit sharing cks last year

 

[swamt]

I am curious to see what the tax rate is on it compared to say our profit sharing cks last year

Tax rate was 33% for the three tax deductions. These were the only deductions from my $1000 bonus check. Final take home was 673.00. Which is one of our reasons we want the company to pay us "full retro" and not a signing bonus. My tax bracket puts me in the 15-20% tax bracket for my income. If they list it as a bonus we will get hit with 33% taxes on it, which means they would have to increase the bonuses well over the amount to cover the higher taxes rather than being deducted our regular tax bracket rates. Bonuses are always higher in taxes.

 

[UPNAWAY]

That is only with holdings not taxes (your tax rate is your tax rate) and you can adjust your W2 to account for that.

 

[AANOTOK]

The $1000 "bonus" will be taxed at 25% per AA

 

[cltrat]

The $1000 "bonus" will be taxed at 25% per AA

My profit sharing one was around 28% so that sounds about right

 

[swamt]

That is only with holdings not taxes (your tax rate is your tax rate) and you can adjust your W2 to account for that.

I already know this. The bonus will be taxed at a higher rate, all bonuses are. Wait and see. When you get your tax cut bonus check they will take out about 1/3 for the gov.

The $1000 "bonus" will be taxed at 25% per AA

$1000.00 Bonus check. Take home after taxes is $673.00. 673 divided by 1000 = .673 which equates to 32.7% removed for taxes. I rounded to 33% in my original post.
I hear you AANOTOK, bonuses are listed as 25% in the tax codes, not sure why they pull 33%, doesn't make sense to me. Guess I will get it back at years end.
Let me know how much they take out of your bonus. If the bonus check is a single check and they take nothing more out it should be 32.7% taxed.

 

[jimntx]

Could the difference be in state income taxes (which we don't have in Texas)? I don't see the states overlooking an opportunity to take a cut of anything you get.

 

[Insp4]

I'll ask a stupid question. Are the retirees left out of this deal?

 

[767 mechanic]

There was a Q & A on jetnet. It said that most people would be taxed at 25% and it would be paid a few days before Jan 23rd. No 401K match or special election. I don't remember anything about the people that have retired. I would think that if you are not on payroll at the time of payout you will not get it. This went into effect on Jan 1 so I would think that the only ones to be left out in the cold would be if you retired between Jan 1 and the time of payout.

 

[Buck]

"What difference at this point does it make?”

 

[Slopoke]

There was a Q & A on jetnet. It said that most people would be taxed at 25% and it would be paid a few days before Jan 23rd. No 401K match or special election. I don't remember anything about the people that have retired. I would think that if you are not on payroll at the time of payout you will not get it. This went into effect on Jan 1 so I would think that the only ones to be left out in the cold would be if you retired between Jan 1 and the time of payout.

The following was from the Q and A from the union.


Are retirees eligible?
Depends upon when you retired. If you were an active team member on Dec. 31, 2017, but have
since retired, you are eligible.

What if I retired on Dec. 31, 2017? Am I eligible?
If you were active on that date and your retirement began on Jan. 1, 2018, yes. If your last day with
the company was Dec. 30, 2017 and Dec. 31, 2017 was the first day of your retirement, no.

What if I was active on Dec. 31, 2017, but retire before the payment is made? Am I eligible?
Yes.

 

[swamt]

Could the difference be in state income taxes (which we don't have in Texas)? I don't see the states overlooking an opportunity to take a cut of anything you get.

Good point. There will be state taxes removed in states with the state taxes.
Here's another difference, the media has been saying that americans will see in their feb checks the new tax cuts on their paychecks so I would also imagine that if anyone gets their bonus after Jan might also see a little less removed.

 

[767 mechanic]

The following was from the Q and A from the union.


Are retirees eligible?
Depends upon when you retired. If you were an active team member on Dec. 31, 2017, but have
since retired, you are eligible.

What if I retired on Dec. 31, 2017? Am I eligible?
If you were active on that date and your retirement began on Jan. 1, 2018, yes. If your last day with
the company was Dec. 30, 2017 and Dec. 31, 2017 was the first day of your retirement, no.

What if I was active on Dec. 31, 2017, but retire before the payment is made? Am I eligible?
Yes.

OK thanks

 

[Buck]

As long as they let TWU handle distribution.