18/5/5/5
11-21-2022, 11:55 AM
#301
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,657
This would be the math for 7% annual raises over 3 years.
7% x 2020
14.5% x 2021
22.5% x 2022
Assuming flat wages of 200,000 per year it comes out to $88,000 retro or 44% of an average year.
Two key factors are compounding the raises and applying it to all years of back wages that are owed to the pilots.
11-21-2022, 12:15 PM
#302
Gets Weekends Off
Joined APC: Jun 2016
Position: Not an RJ driver anymore
Posts: 1,076
Calculate however you want right now. IMHO, the correct methodology is 2020 wages x 2020 raise. 2021 wages x compound raise for 2020 & 2021, 2022 wages x compound raise for 2020, 2021 and 2022.
This would be the math for 7% annual raises over 3 years.
7% x 2020
14.5% x 2021
22.5% x 2022
Assuming flat wages of 200,000 per year it comes out to $88,000 retro or 44% of an average year.
Two key factors are compounding the raises and applying it to all years of back wages that are owed to the pilots.
This would be the math for 7% annual raises over 3 years.
7% x 2020
14.5% x 2021
22.5% x 2022
Assuming flat wages of 200,000 per year it comes out to $88,000 retro or 44% of an average year.
Two key factors are compounding the raises and applying it to all years of back wages that are owed to the pilots.
Don't forget - about 50% to taxes
11-21-2022, 12:31 PM
#303
Gets Weekends Off
Joined APC: Dec 2009
Position: Capt
Posts: 2,049
You guys over thinking this are setting yourself up for disappointment. There won’t be any compounding, adding to X plus Z.
It will be X% of 2019 wages + X% of 2020 wages + x% of 2021 wages. I would think also the appropriate amount of DC with it.
It will be X% of 2019 wages + X% of 2020 wages + x% of 2021 wages. I would think also the appropriate amount of DC with it.
11-21-2022, 01:02 PM
#304
Gets Weekends Off
Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,821
11-21-2022, 01:11 PM
#305
Roll’n Thunder
Joined APC: Oct 2009
Position: Pilot
Posts: 3,873
This is a common misconception. Any "supplemental income", of which bonuses and profit sharing qualify as, are WITHHELD at a 25% federal tax rate, along with the other standard social security, medicare, state tax, etc. However, all income, regardless of type, is lumped together when you actually file your taxes for that year. So, hypothetically if your marginal tax rate for the year was only 20%, you'd get that additional 5% that was withheld back as a refund.
11-21-2022, 01:53 PM
#306
Gets Weekends Off
Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,821
This is a common misconception. Any "supplemental income", of which bonuses and profit sharing qualify as, are WITHHELD at a 25% federal tax rate, along with the other standard social security, medicare, state tax, etc. However, all income, regardless of type, is lumped together when you actually file your taxes for that year. So, hypothetically if your marginal tax rate for the year was only 20%, you'd get that additional 5% that was withheld back as a refund.
11-21-2022, 01:57 PM
#307
Gets Weekends Off
Joined APC: Jun 2015
Posts: 168
Without compounding retro pay, there would be even less incentive for the company to reach a timely deal in the future. It needs to happen.
11-21-2022, 01:59 PM
#308
Gets Weekends Off
Joined APC: Apr 2008
Position: DAL FO
Posts: 2,185
Yes. Similar to profit sharing. It’s just treated as ordinary income by the IRS. When you calculate your taxes at year end all ordinary income goes on the form and is treated equally.
11-21-2022, 03:22 PM
#310
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,657
This is a common misconception. Any "supplemental income", of which bonuses and profit sharing qualify as, are WITHHELD at a 25% federal tax rate, along with the other standard social security, medicare, state tax, etc. However, all income, regardless of type, is lumped together when you actually file your taxes for that year. So, hypothetically if your marginal tax rate for the year was only 20%, you'd get that additional 5% that was withheld back as a refund.
As an add on, there are exceptions for long term capital gains and qualified dividends. Those are taxed at 0-20% max. Passive income (rents, royalties, etc) also benefit from lower taxation because there is no social security tax.
Hint: Wealthy people derive income from low tax sources. It's how they keep more of what they make.
Last edited by Gunfighter; 11-21-2022 at 03:41 PM.
