Alaska gets on board with sharing tax cuts with employees

[swamt]

Now Alaska is joining Southwest, American, and JetBlue in sharing the new tax reform savings with their employees. Congrats to all the Alaska employees...

Alaska Air employees will get $1,000 bonus due to Trump tax overhaul

 

[jimntx]

With all this glee about a $1000 bonus, maybe we should put it in perspective. By the time you take out the taxes--and remember all but 7 states will take a state income tax cut from the bonus as well as the Federal cut--you'll barely have enough to make 1 monthly payment on that giant pickup truck you bought last year. At last, mother can have that operation.

 

[swamt]

Ok. Pen to paper. 1,000.00 Bonus. As in our case we are receiving them Mon. I read that bonuses are taxed at a flat rate of 25% when given in a separate check. So there goes 250.00. Most here are in the 25-28% tax range. I have no state income taxes. Although the are suppose to take out my 401K and retirement contributions which are at 10% currently where the co. matches 9.3%. So that's somewhere between 34.3% and 37.3% total from bonus. I only expect to see 600-650 after deductions are removed. But hey, that's still more than I had coming to me without Trump and the tax cuts. Not sure what state tax rates are but could it be as high as 40-50% by the time all considerations are taken out??