US Airways profit sharing formula?

[Tweaker]

1) What is the formula to distribute profit sharing at US Airways?
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2) Does it vary by seniority or income or is it equal for all pilots?
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3) Do US Airways west pilots receive this as well?
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Please exercise some restraint and make use of the many and varied other posts to discuss non-related issues/gripes.
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I fully realize that profit sharing checks depend on ... making a profit. I consider this found money, but it is/may be money nonetheless. I am attempting to gauge the drop in family income from an upcoming move here.
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Thanks in advance!

 

[PositiveRate]

All pilots West & East receive a check.

37% of the monies in the pool go to the pilots

Divide that by the total number of pilots and voila...same check for everyone who was active all 12 months. If you were out on leave or retired, etc, you get a prorated share.

There was 50+ million in the pool after last quarter. Depending on the results for Q4 '07, that could end up more or less, but if it stays in that range, the checks will be similar to last year at around 4500-5000$ per pilot.

 

[xrated]

Depending on the results for Q4 '07, that could end up more or less, but if it stays in that range, the checks will be similar to last year at around 4500-5000$ per pilot.

Keep in mind, 4500-5000$ before taxes. Since this money is considerd "gift" money, it is charged with a 50% + gift tax.

It might not be a great idea to plan on profit sharring money when making a decision to come over to this "turd in a punch bowl".

 

[Saabslime]

Couldn't we petition the company to have any profit sharing deposited directly to 401k accounts? I'm no tax lawyer but I believe if you then withdraw the money from that account the tax hit would be much less. Anyone know for sure?

 

[TWA Dude]

As I recall, last year the East pilots varied the payout by senority whereas the West pilots all got an equal amount.

 

[UALjan15]

Keep in mind, 4500-5000$ before taxes. Since this money is considerd "gift" money, it is charged with a 50% + gift tax.

Are you sure about this? I don't remember a 50% tax hit last year....When I looked at the pay stub that included the profit sharing, I didn't see any tax deduction that was out of the ordinary.

What is your source?

 

[ALGFLYR]

As I recall, last year the East pilots varied the payout by senority whereas the West pilots all got an equal amount.

Not true. The amount was equal for all pilots. There were however a lot of pilots getting less such as returning furloughees that were not on the property the full year. The amount was pro-rated if you were not active the entire year, otherwise, everyone received the same amount...

 

[LearLove]

do you think they will include the guys that are being held? say someone was supposed to be inclass on july 9th but is held for 9 months.

I doubt it but guess it is worth a try.

 

[PositiveRate]

my guess is being held at a regional is not considered active at mainline, but you never know.

it's taxed at a higher rate, but that's the first i've heard of a 'gift tax'. if you want it to go into your 401k, you can adjust your 'bonus' withholdings to 50% and possibly even 100%...i know there was some stuff put out on that last year and i'm sure all the same info will come out again this time.

 

[steveg]

Don't get to hung up on the tax thing.

xrated is an incoherent fool who is usually drunk. It's like getting tax advice from a 3 year old.

 

[LearLove]

as for the tax thing - I took a payout for some vacation (50 hours) that i couldn't carry over into 2008. They taxed the crap out of it. about 47% by my numbers.

 

[Tweaker]

Thanks for the info guys!

 

[Contract]

Profit sharing is not a frigging gift. It is part of your compensation package and therefore it is taxed as ordinary income. GEEZE.....thats all we need is somebody to plant a seed like that in some of these politicians head and they may very well try and impose a friggin gift tax. Thats all I need!

Food bill is higher, gas is higher, tax bill is higher and my friggin paycheck is not getting any bigger. Whats this world coming to? Now Gift Tax??? give me a friggin break!

 

[metrolet]

Those being held at J4J carriers are supposed to be included this year. We shall see.

 

[Deadalus]

Keep in mind, 4500-5000$ before taxes. Since this money is considerd "gift" money, it is charged with a 50% + gift tax.

It might not be a great idea to plan on profit sharring money when making a decision to come over to this "turd in a punch bowl".

What? It's taxed the same as income, minus 401k, ALPA, etc.

 

[Hpilot]

My check was only 1/3 of what a guy I know at Fed Ex got. Then again it was 3 times as much as another guys check that's a captain at Alaska.

 

[FLYLOW22]

Keep in mind, 4500-5000$ before taxes. Since this money is considerd "gift" money, it is charged with a 50% + gift tax.

It might not be a great idea to plan on profit sharring money when making a decision to come over to this "turd in a punch bowl".

That was a big rumor here for a while too in regards to bonuses. Not true.

W2 earnings are W2 earnings. If you score high enough on your earnings to be taxed at a 50% rate, good for you. You should probably buy a fractional share and quit flying.

 

[TWA Dude]

Not true. The amount was equal for all pilots.

Thanks for the correction. We were misinformed.

 

[Deadalus]

I think my check was around $3500 take home. I wouldn't come here for that. It's gone from a great place to work pre merger to total crapola. Lot's of potential but the East is intent on destroying that. One trip to the verge of liquadation wasn't enough for them.

 

[ALGFLYR]

do you think they will include the guys that are being held? say someone was supposed to be inclass on july 9th but is held for 9 months.

I doubt it but guess it is worth a try.

I think we will get this too. I'm in the same boat as you. According to the J4J protocols, once you are recalled, on July 9th, and are held at a J4J carrier (Rep), you will be made whole for pay and benefits... I am under the impression that we will get $$. If not, I'll be very vocal about this. We are currently building longevity at mainline as if we were actively on the property... this is no different.

 

[ALGFLYR]

One trip to the verge of liquadation wasn't enough for them.

It's called "Living on the edge, baby!!!"

 

[Deadalus]

Yeah, no worries. I'm sure Delta will come and save us when the creditors are sharpening their knives at our door.:beer:

 

[PHXFLYR]

my guess is being held at a regional is not considered active at mainline, but you never know.

it's taxed at a higher rate, but that's the first i've heard of a 'gift tax'. if you want it to go into your 401k, you can adjust your 'bonus' withholdings to 50% and possibly even 100%...i know there was some stuff put out on that last year and i'm sure all the same info will come out again this time.

I believe the wholly owned regionals got a profit sharing check but I think the formula for computing the payout was different.

PHXFLYR

 

[greyskyracer]

At Piedmont our profit sharing checks were around 350.00. PSA didn't really give anything back in concessions, so they were not contractually entittled to profit sharing. I believe their management still gave them a very small bonus. (under $50.00)

 

[Crzipilot]

psa was entitled to profit sharing, as they did give some concessions during BK...but not much, so their checks were fairly small. 50.00 or so.

As to the J4J's being made whole for pay and benefits, ALPA has been very loose in the interpretation of that made whole language, I wouldn't put it past them to exclude those of us that are held. As they have found ways to give the jr less slices of the pie many times before. Now if they woulda fought for us to be paid our hourly mainline rate for the actual pay hours each month, (I.E. being made whole for pay) and even made up the difference in per diem and a few other things. then I wouldn't doubt we'd be included in the profit sharing. The ALPA track record speaks for itself...

 

[AutoBus]

Keep in mind, 4500-5000$ before taxes. Since this money is considerd "gift" money, it is charged with a 50% + gift tax.

It might not be a great idea to plan on profit sharring money when making a decision to come over to this "turd in a punch bowl".

wrong!

 

[OnTheDole]

just pulled the check... (west pilot)

last year pilot profit sharing before taxes $4712.32
after deductions (my normal witholding married/zero depedants, alpa and 401k) was $2620.60 if you add back in alpa (86.38) and 401k (282.74) you get $2989.72 which is a tax rate of 36.3%. On a normal check my final tax rate was 20% so they did ding the profit sharing @ a higher rate for me (and i assume for everyone else that didn't adjust their witholdings for the profit sharing check)

 

[PositiveRate]

I believe the bonus is taxed at the highest nominal rate. They put out some info about this as well as adjusting your 401k deductions to avoid some of that bite.

 

[PHXFLYR]

That is correct. The highest nominal rate, not 50 % like x rated claimed.

PHXFLYR

 

[xrated]

OOOFTA!! Note to self, DO NOT post on Flightinfo after downing a 1/3 bottle of Jack.

On behalf of myself and my entire family (including pet dogs, the kids hamsters and fish) I apologize for posting inaccurate information on this board. Upon further review my bonus was also taxed at a much lower rate than I had posted. Approx 35% as others have stated.

To right this wrong, on the day of my retirement, I will split my company funded pension pay out and give to all those who made important career decisions based on my bad advice.

Before the lynch mob comes and takes me away, can we maybe change this subject to somthing that is a little less confrontational like say.....The Nicolau award, or USAPA, or Doogies drinking and driving, the price of oil, Britney Spears?