Dear AFA Recording: Feb 10, 2015

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  • ACTION NEEDED: Vote No Fast Track for Trans-Pacific Partnership Congressional Letters
  • Taxes Withheld from Profit Sharing Deposits Made to Tax Deferred 401(k) Accounts Explained
  • 30-Day ANP Deadline
  • Don’t Forget to Verify and Update Your E-Lines Email Address

Good evening Ladies and Gentlemen and welcome to Dear AFA. We are a democratic, Member driven Union of Flight Attendants for Flight Attendants. Today is Tuesday, February 10, 2015.

ACTION NEEDED: Vote No Fast Track for Trans-Pacific Partnership Congressional Letters
The Trans Pacific Partnership (TPP) is poised to become the most dangerous trade agreement ever. This far reaching trade agreement would set rules governing approximately 40% of the world’s economy; yet, it is being negotiated behind closed doors. In January we focused on phone calls to our elected Representatives, which helped initially make it known that this type of agreement is unacceptable.  We now need to take the next step and shift our focus to handwritten letters to our elected Representative to further drive home our displeasure.  

In order for this campaign to be successful, it is crucial that letters be handwritten.  Each letter MUST include a legible name, address, city, state and zip code.  Handwritten letters can be written on any type of stationery including hotel stationery, postcards, note paper, etc. and should include “vote no on fast track” in the message.  Once you have finished writing your letter drop it off at your AFA Local Council office or place it in the AFA lock box located in any domicile. We have provided a guide to help you write your handwritten letters on our website along with more information about the TPP. 

Please encourage your family, friends and flying partners to send their letters too.  We must make it clear to our elected Representatives that we expect them to oppose Fast Track for the TPP. 

For more information about this topic visit the United MEC Website

Taxes Withheld from Profit Sharing Deposits Made to Tax Deferred 401(k) Accounts Explained
We have received a number of inquiries from Flight Attendants who have elected that their Profit Sharing proceeds be directed to a tax deferred 401(k) account and are noticing a variety of taxes, including Federal Income taxes, being withheld.

By way of background information, based on Member feedback AFA-CWA sought a change to our Contract that would provide Flight Attendants with the ability to direct how the Profit Sharing payment would be made - either in cash or into a tax deferred 401(k) retirement account.   This was a change from what had previously been decided by vote of the Membership to direct these proceeds into our 401(k) accounts.  In obtaining this option, AFA-CWA was able to expand the initial selection from one of cash or 401(k) deferral to include the ability to direct contributions in any combination sought by the individual.  This includes the options of cash, a contribution to a tax deferred 401(k) or Roth 401(k) or any combination of the three options. 

This Contract modification which provided Flight Attendants the ability to self-direct the Profit Sharing proceeds changed the nature of the Profit Sharing payment from an employer contribution to an employee contribution.   This was not an insignificant change.

As a result, this money even when directed into the 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 Federal 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 see Federal Taxes withheld from the Profit Sharing proceeds that have been directed into the 401(k) accounts.

Should you have additional questions, please contact your Local Council office.

30-Day ANP Deadline
As a reminder, United is offering 30-Day ANP for the bid schedule month of March 2015 (3/2/15 – 3/31/15). If you are interested in 30-day ANP for the March schedule month, you must have your request on file through Unimatic by 0800 Central Time (CT) on February 13, 2015. March 30-day ANP awards will be posted by 1730 CT the same day.

As always when requesting any time off, we encourage you to fully review all available information and ask questions about anything that is unclear.  Should you have additional questions, please contact your Local Council office.

Don’t Forget to Verify and Update Your E-Lines Email Address|
Don’t forget all current subscribers to the United AFA E-Lines need to verify and update their information before we relocate our newsletter system. If you have not verified your information by the March 3, 2015 deadline you will no longer receive the E-lines newsletter. Verifying your information is quick and simple. Please visit our website for instructions. Once you have provided the information you will be all set for the transition.

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