The issue with being a contractor isn't just taxes, it's the liability if you're in an accident or incident with their aircraft.
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Quoted for Truth. For anyone wondering about this, see what I wrote above about the possibility of subrogation. If you get into an accident while working as an independent contractor pilot, you could easily be financially ruined for life.
Yes and I think it's screwing over their competition as well who are likely having to pay health insurance and pay roll taxes. I really wonder which companies have the highest labor expense per pilot and it wouldn't surprise me if AA was at or near the bottom.
The worst is that as far as I'm aware they haven't upped the 'per diem'. In 2010 the minimum GSA government rate for hotels was $70, in 2013 it was $77 and since the last quarter of 2016 it's been $91. There were some very surprised co-workers when they went to file their taxes and realized that their 'per diem' wasn't actually per diem.
Yes, and the price of hotels, food, rental cars, etc. has gone up significantly since 2010.
And yes, all of your compensation at AAFC, whether flight pay or per diem, is lumped into one amount labeled "Non-Employee Compensation". Unlike the Per Diem you receive as an airline crewmember, for example, the Per Diem at AAFD is taxable, although you can deduct the actual amount you spent as travel expenses at least.
Which is absurd when you realize that working non-stop for 7 months isn't for everyone and they expect you to commit for a year with an even more expensive buy out than we had when I was there. The only year long contracts that existed were for pilots who were upgraded to Aztecs when I was there and that was only if it happened going into the summer. AA's been aggressive about going after people for leaving their contracts, but from one of the guys I knew who had money his lawyer sent them a letter threatening to countersue and AA's threats were hastily dropped after that.
It sounded pretty bad years ago when I was there for the guys who were stuck with it as there were zero hurricanes and they were doing routine stuff for meager pay around AAFC included painting. I ran into a guy that got stuck with it last summer and it sounds like they've got people splitting bedrooms all summer long. I think it was two beds to a bedroom, but maybe more in a condo and 'thrilled' seemed to be the furthest thing from what he was with the arrangement. There's zero reason to accept such a *I don't have the education to emote without using a curse word* arrangement unless they've made significant changes to the pay and terms.
I bolded it so people would realize what the hell they were getting into. I think we had a pilot's grandfather die during hurricane standby and they wouldn't let the pilot visit his grandpa while he was sick, but I guess they thought the pilot was full of .
I'm a little surprised threatening to countersue worked that easily, but I'm glad to hear it.
It was pretty awful when I did it, although they didn't make me do any painting. However the pay is low, only $450 a week, and you are still an independent contractor, so you'll be liable for double social security and medicare taxes. Because you're on "salary", it will still be $450 a week no matter how much work they have you do. a good 40 hours a week at the front desk of the flight school, in addition to flying duties, was the norm. Oddly enough, it seemed hurricane standby pilots were held to much higher standards than pilots out on the road, and Sherwood got on my case for not leaving earlier than the FBO the planes were kept at opened to take them on exercise flights. I think the sketchiest thing they wanted me to do was when I gave their director of maintenance a flight review so he'd be legal to pick up an Aztec they were buying from KHWO. We took a 172 down there and they had me give him a flight review on the way down. 30 minutes into the flight back to DAB he had an engine failure in the Aztec, and diverted to Stuart. So I landed there and gave him a ride back. I found out when I signed his logbook for the flight review that it was his first flight in 4 years.
Interesting to hear about the sleeping arrangement, do you know if that was provided by the company? When I did it you were on your own to find housing. I rented a room from a conspiracy theorist (actually a very nice man but very paranoid, he had most of the windows in his house blacked out including the one in my room, dealt only in cash and was a 9/11 truther) that was more expensive than my apartment back in Iowa.
I'm a little surprised they wouldn't let him see his grandfather, that's pretty low even for Air America. As much as a I criticize AAFC they did allow a pilot on the road to go home for a few days after a family member of his passed away. When I did hurricane standby they also let me have one weekend off to attend a wedding back in Iowa, although I made those arrangements a few weeks in advance.
