jtriple7

Ramp 6.5 % , mechs and flt atts 13 %

LostInAsia

What's the tax rate on profit sharing? Same as regular pay or is there a "special" rate?

steve0617

If the Googling I did wondering this myself, the Fed tax rate is a flat 25%, regardless of what your W4 says.

The rest to be taken out for FICA, state etc is the same as if it was a regular (albeit very large) biweekly check. So, a lot.

But I might be very wrong about this.

cadetdrivr

Special rate.

LostInAsia

.............

oldmako

Perhaps you're right. But I doubt we'll waste a trillion dollars (not to mention 4000+ lives and 20,000+ limbs) or so invading Iraq.

krudawg

Uh oh, the APC police are gonna dock you points for that. Ask me how I know :-(

LostInAsia

That's what I get for trying to make a joke.

Larry in TN

Not to be pedantic but it is a withholding rate, not a tax rate.

They withhold at a higher rate (25% Fed) but at the end of the tax year it is not taxed any differently than the rest of your income. The higher withholding rate will result in a slightly larger refund, or slightly smaller tax-due bill, when you file your return next spring.

Sunvox

On an absolute basis your number may be correct but on a relative percentage basis you are mistaken. Last year all pilots were paid 3.78% and this year all pilots were paid 13.03% which is equal to 3.45 times last years payout. Mind you this doesn't say anything about absolute numbers since year over year you may have vast differences in your eligible pay. The whole point of my simple math was to take a SWAG at the percentages not the absolute number which obviously has great variation based on eligible income.

And, if you look at my post from Dan Jones which includes the actual formula used to calculate profit sharing by group you would see, first off, the calculation does in fact use Gross Wages of employee groups and although it is true pilots get more of tranche B than FA's it is also true that unless the profit is truly enormous the ratios remain very close year to year because their multiplier for tranche A is 15 and the pilots multiplier is 10, but for tranche B the FA multiplier remains 15, but for pilots it is 20 therefore the ratio within the pool will be really close unless tranche B is huge.


FA's were paid 13.00%

AFA Profit Sharing