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.
