Profit Sharing Payments
February 21, 2023
Profit Sharing payments are expected to be issued via a separate check on Tuesday, February 28, 2023. Participating employees will receive their payment through their normal payroll process (i.e., direct deposit or physical check).
Due to local requirements, the payout date may differ for Internationally domiciled Flight Attendants. These Flight Attendants will not receive a separate check but will instead receive the Profit Sharing payment on their regular paycheck closest distribution date due to taxation and other regulatory issues net of any deferrals to any eligible retirement plan account. Also, Members outside the U.S. who are enrolled in the floor rate program receive appropriate floor exchange rates when Profit Sharing payments are received through the normal payroll process.
Flight Attendants may access their individual statements from Flying Together>Employee Services>Compensation and Incentives. Supervisors and managers do not have access to your individual Profit-Sharing statement.
In anticipation of questions, we have received in previous years, we remind those who are deferring the proceeds of our Profit-Sharing into your 401(k) on a pre-tax basis, you may see a variety of taxes, including Federal Income taxes being withheld on some portion of the Profit-Sharing proceeds deferred.
This money even when directed into the pre-tax deferred 401(k) account, is subject to FICA (Social Security and Medicare) withholding, CA state disability withholding as well as some other State and Local taxes. The money withheld from the Profit Sharing payment to pay these FICA, state disability and other taxes is considered wages for the purposes of the Feder tax code. As a result, the money withheld from the Profit-Sharing to pay these various tax and disability amounts is reported as wages and is further subject to Federal tax withholding. It is for this reason that you will Federal Taxes withheld from the Profit Sharing proceeds that have been directed into the 401(k) accounts.
As a reminder, VSL participants are eligible to receive a Profit Sharing payment as outlined in the VSL program documents. Additional specific information on the Profit Sharing Program can be found in the company’s Profit Sharing Frequently Asked Questions (FAQs).