United enrolled friend fees

Helenguim

New Member
I am an enrolled friend of a United worker. He sent me a copy of his travel report and on one side its an amount saying "pass tax value" and on the other side a different amount saying "tax withholding" deduct from payroll. He says that i should give him both amounts. I would like to know for sure so none of us loose money so I would appreciate some help on the matter. For example:
EWR-GRU - pass tax value - 79.00
Payroll deduct - 30.53
 
The way I've done it is to send 20% of the cost of the pass when you booked it. What does that work out to?

How much are enrolled friend fees these days?

Alex.
 
The pass tax value should be imputed income. Your friend would then pay income tax on that when filing tax returns. So your friend would not actually owe $79 in taxes on $79 of income. The deduction would be for all the taxes paid on a ticket, segment fees, etc. So that amount is real.
 
My niece worked for United for 6 days but quit in 2011. I always travelled with her benefit but they never withheld any tax from her paycheck. At the end of the year she would have an extra income and I would pay taxes to her over that amount - which wasn't much. But now, it seems they are taking the tax on paycheck, so why is the "tax travel value" important?. Isn't enough just to give him what they took from his paycheck? Wouldn't that be the tax I paid at the end of year to my niece before?
 
We're switching out system around quite a bit. Gone are the days of "gimme a credit card" as then the S4 "Friends and Family" fees are payroll deducted and the whole new "WTF is Imputed Income?" thing we're going to have to learn about.

But I uhhhhh… didn't sign up for "Friends and Family Passes" so uhhh, yeah, you might have to ask someone else! :)
 
My niece worked for United for 6 days but quit in 2011. I always travelled with her benefit but they never withheld any tax from her paycheck. At the end of the year she would have an extra income and I would pay taxes to her over that amount - which wasn't much. But now, it seems they are taking the tax on paycheck, so why is the "tax travel value" important?. Isn't enough just to give him what they took from his paycheck? Wouldn't that be the tax I paid at the end of year to my niece before?
You are confusing two separate items.

One is the imputed income on the value of the benefit, in this case $79. At the end of the year it will increase the taxable income by that amount.

Second are the taxes due on a ticket along with fuel, user fees, etc. That part is being payroll deducted because the airline has to pay that to the government.
 
You are confusing two separate items.

One is the imputed income on the value of the benefit, in this case $79. At the end of the year it will increase the taxable income by that amount.

Second are the taxes due on a ticket along with fuel, user fees, etc. That part is being payroll deducted because the airline has to pay that to the government.
So if I understand, I should give him back the money for the payroll deduct which I've already done) and a percentage over that income pass value - depending on his tax bracket. Would you say that 25% is a reasonable percentage to reimburse him?
 
So if I understand, I should give him back the money for the payroll deduct which I've already done) and a percentage over that income pass value - depending on his tax bracket. Would you say that 25% is a reasonable percentage to reimburse him?
That sounds about right.
 
United makes it easier, you can just use a credit card when listing instead of using the payroll deduct. In this case you owe your friend $109.53
 
Back
Top