Finders Fee?

[NJAowner]

100 1/2 --

Please step away from the keyboard, take a few deep breaths and maybe even have an adult beverage of your choice and CHILL.

All I was trying to tell jumppilot was that a bonus is not taxed at a higher rate than a salary raise. It is not semantics, just the tax code. Nothing more and I hoped I saved him some $ from having to speak with an accountant about this single issue.

Fly safe.

 

[gret]

It appears we are confusing apples with oranges.

Withholding has nothing to do with your tax rate. It just the method of paying as you go. Your tax rate is based off your 1040 and whether it is classified as a bonus or salary is not relevant. It is earned income and taxed at the same rate.

If you don't withhold enough during the year, you pay when you file your return. If you over withhold, you get a refund.

 

[NJAowner]

Gret is 100% correct.

Fly safe.

 

[stknrdr]

Depending on the size and annual revenue of the company, and the size and the anticipated demand for the aircraft.....

I have seen anywhere from $500-1000 one-time bonus per plane you bring to the table. If you're bringing something larger than a light or mid sized aircraft negotiate this out right away.

"I know the company will be rewarding my efforts for the added revenue, but I'd like to have an idea of what amount you're thinking so I'll know how much additional time and effort I'll need to plan for."

Good luck....

 

[SSDD]

I'm probably not saying anything you haven't already thought about, but if negotiations are already taking place, and you haven't approached your boss about a finders fee, you are already behind the power curve.

 

[Publishers]

I think a finders fee is inappropriate unless part of your agreed upon deal in the first place. Anything that helps your company grow is good for you and I am sure that the company will welcome assistance. Coming up with it now is too late.
Ask them if they want you to look for these kind of opportunities and what additional compensation you may obtain for future ones.

 

[100-1/2]

Gret/NJ-

Before you guys warm up the bathwater and start disrobing each other, think about what you have said, really!

Your withholding are a direct relationship to your tax rate as determined by the amount of exemptions you are claiming on your W-4 as it relates to the total income of your household.

http://www.irs.gov/individuals/article/0,,id=96196,00.html

Asphinctersayswhat?

100-1/2

 

[icefr8dawg]

I've done this before.

Try to strike a deal aligning everyone's interests. If the charter revenue deal is 85/15% break it down 85/10/5% owner/management co./yourself.

Another pilot I know gets $400 a day additional salary when he flys charter on the aircraft. When added to his base beechjet salary he can really make a living for the extra work.

My problem with a rainmakers fee is it's one time and your association with the aircraft may be long term..

 

[NJAowner]

Bonuses & Taxes

100 1/2 -- We are all spending way too much time on this, but in most circumstances, the withholding on a bonus is a flat %, regardless of your tax rate, or declarations on your W-4, including exemptions. For payroll tax withholding purposes (not for tha ultimate amount of tax paid on the tax return), bonuses are generally not treated in the same manner as regular salary. Based upon what most pilots post on here, that flat rate would be in excess of such pilot's marginal tax rate. In such case, while more $$ is withheld from the check, the pilot should be entitled to a credit or refund after the return is filed, yielding an effective tax rate lower than the withholding rate.

You may want to check out:

http://www.adp.com/tools-and-resour...rces/supplemental-wage-bonus-withholding.aspx

As far as Publishers and the others, there are several approaches. A jerk employer may say that the issue was never discussed with the employee so therefore he is not obligated to pay a bonus. However, if he doesn't pay a decent bonus, my opinion is that he is short sighted and will not develop "team players" who are interested in the organization. But it goes both ways -- if the company is not interested in developing a team, don't expect your employees or pilots to act as one. On the other hand, if this is something the pilot thinks may happen often, he should negotiate for it as part of his compensation package.

Happy New Year to all and

Fly safe.