Registered Guest Question

[luv2flyLCC]

Can anyone explain to me the last part of the following quote that says the employees’ paycheck will reflect the value of the ticket, which will then be taxed?

"Registered guests will be eligible for unlimited travel privileges at the same fees as active employees (free), but with an imputed payroll tax to the employee (meaning the employees’ paycheck will reflect the value of the ticket, which will then be taxed)."

Thanks.

 

[caligurl]

Can anyone explain to me the last part of the following quote that says the employees’ paycheck will reflect the value of the ticket, which will then be taxed?

"Registered guests will be eligible for unlimited travel privileges at the same fees as active employees (free), but with an imputed payroll tax to the employee (meaning the employees’ paycheck will reflect the value of the ticket, which will then be taxed)."

Thanks.

lets say you get paid $1000 a paycheck and you have your registered guest fly and the ticket is valued at $200. then your paycheck will actually be for $1200 and get taxed on the 1200 instead of your normal 1000

 

[rjh]

Can anyone explain to me the last part of the following quote that says the employees’ paycheck will reflect the value of the ticket, which will then be taxed?

"Registered guests will be eligible for unlimited travel privileges at the same fees as active employees (free), but with an imputed payroll tax to the employee (meaning the employees’ paycheck will reflect the value of the ticket, which will then be taxed)."

Thanks.

I emailed the pass bureau, and they said the taxable amount is based on 10% of the Y6 fare.

So, if a Y6 fare is $1000.00, your "taxable income" on your next paycheck will be $100.00 more than it usually is. They will add $100.00 to your gross pay; deduct the taxes for the full amount, and then of course, deduct $100 again.

 

[tadjr]

The taxes arent really that bad a deal vs having someone eligible to travel with you and what a buddy pass would have been. When I had my roommate on we went to Madrid twice, LGW once, SNN once, DCA twice, HHH once and the taxes on my income tax ended up being just over $100 more than I would have paid the IRS if his trips hadnt been included. remember though that they are computed PER SEGMENT, thus if you are making a connection somewhere, you are going to get hit with the local fares for each market and not the fare from point A to B. This part sucks, but it was still a bargain in the end.
It usually took a paycheck or two to get the info included on the paystubs. Be sure to keep records too of what travel was done so you can keep track of the actual travel amount that should be charged.