glasspilot
Well-known member
- Joined
- May 17, 2004
- Posts
- 1,622
The new system is more money for FOs and here is why.
Under the old system the 5K is taxed as a bonus so you paid more taxes on the 5K and took home less of it.
Also, under the old system the 5K was not factored in when calculating overtime pay. OT is 1.5 your daily rate and your daily rate is your yearly pay divided by 182 (182 work days a year). Under the new system that 5K bump is calculated into your daily rate and is multiplied by 1.5 if you work a day of overtime.
Under the old system the 5K is taxed as a bonus so you paid more taxes on the 5K and took home less of it.
Also, under the old system the 5K was not factored in when calculating overtime pay. OT is 1.5 your daily rate and your daily rate is your yearly pay divided by 182 (182 work days a year). Under the new system that 5K bump is calculated into your daily rate and is multiplied by 1.5 if you work a day of overtime.