Compare Fedex LOA to Mesa's Beijing incentives

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07-13-2007, 07:03 PM

#11

fdx727pilot

Gets Weekends Off

Joined APC: Jul 2006

Position: 767 Cap

Posts: 1,306

Quote:

Originally Posted by FDXLAG

Until Price Waterhouse tells me I am wrong I refuse to accept that I would owe more US taxes on:

My income + FDA benies - Income Exclusion (82.4k) - Housing Exclusion (40-80K)

then

Taxes on my income in memphis

Particularly in Hong Kong.

Of course the Tax Equalization data remains SECRET NO Freight Dog

Probably not. I never claimed you would owe more than a US Base. I said you would owe a lot more than "none." However, without the tax equalization, you are responsible for foreign host country taxes on your salary + FDA bennies (16% for HK, around 50% for CDG.) Fedex picks up the difference between the total of that and US taxes, and what you would have paid in Memphis. It is not as good as if FDX picked up the whole foreign tax bill, but it is still better than going it alone, i.e. current situation.

There are a lot of bad points to the LOA. Tax equalization is not one of them. Mandatory PW tax prep is another matter, but from reading on their website, it is a standard part of their tax equalization service.

http://www.pwchk.com/home/eng/tax_ias_equalization.html