WE ARE THE PEOPLE OF AMERICAN AIRLINES
Update on Non-Rev Travel Related Imputed Income
Earlier this year, we shared that the IRS now requires us to report your income related to retiree travel on Form W-2. Because of this late change in reporting requirements, the company paid related Federal payroll taxes on your behalf for 2017. At the time, we also shared that you would be responsible for all payroll taxes associated with travel imputed income in 2018 and beyond.
As a reminder, imputed income is the estimated value of a trip that is added to your taxable income to comply with the IRS’ guidelines. It applies to travel by registered companions, non-dependent children, domestic partners and their children. Trips are valued for imputed income purposes based on mileage for each segment flown.
If any of your travelers subject to imputed income have flown since January 2018, you’ve incurred imputed income for their travel. Because we haven’t had an automated payroll tax payment solution for you to pay the payroll taxes associated with that income, you’ve been accruing a balance. Beginning in November 2018, we expect the Travel Planner to be able to process your payroll tax payment associated with imputed income.
Here’s what that means:
Once your imputed income balance is added to the Travel Planner, you’ll be in “pay now” status for any payroll taxes that are owed, which means you’ll need to complete payment through the Travel Planner using a credit or debit card.
We expect this payroll tax balance to include all payroll taxes due on your imputed income due from January 2018 through a date in November. That date will be determined once programming is complete.
We’ll let you know once the system is live and provide more detailed instructions on how to pay your payroll taxes through the Travel Planner.
This imputed income and any related payroll tax, plus any additional accrued throughout the rest of 2018, will be included on a year-end Form W-2 that you’ll receive at your address on file with American.
If you have an imputed income balance, you should have received a letter in the mail including similar information as above, as well as a statement to give you an idea of your current payroll tax balance. If you see any errors on this statement, it’s important you file your dispute before November by following the below steps:
We’ll be back with more as we get closer to November. If you have any questions in the meantime, please reach out to the Team Member Service Center at 1-844-543-5747.
Under Travel, click “Open a case or review my case”
Click “Open a case”
Enter "Imputed income" as the Subject
Select "Travel" for the Topic
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A new (and improved) way to manage travelers
Since launching the Travel Planner last year, we’ve continued to look for ways to both improve the travel system and make your life easier. That’s why we rolled out electronic form of payment for all travelers last year. And that’s why, starting Dec. 6, we’re updating the way you manage travelers within the Travel Planner.
Today, you add, edit and remove travelers in a different system that feeds the Travel Planner. The Travel Planner should be your one-stop-shop, so starting this week, you’ll be able to make these changes directly within the Travel Planner.
What does this mean for you?
Overall, this update simply makes it easier for you to manage your travel. You can list for flights, check in and more in the Travel Planner, and now you’ll be able to add and remove travelers there as well.
When you’re ready to add a traveler, it’s simple.
Click on Travelers in the top toolbar of the Travel Planner.
At the bottom of that page, click on Add traveler.
Enter the same information you do today.
While this update helps streamline your travel experience, we know this is a change. To get us through the busy holiday travel season, we’ll leave the current system up and running. Early next year, all traveler updates will be made within the Travel Planner. Don’t worry, we will keep you updated along the way. In the meantime, know that any changes you make in either system will update in both places (so, you don’t need to update both).
We’ve created a user guide to walk you through it here.
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