Summary
Legacy American employees on U.S. domestic payroll can look forward to a new pay statement design in 2014. The change will be cosmetic only and will categorize paycheck information to assist team members when they have questions about their pay.
Key points
- Apart from the look and feel, nothing about your pay statement will change. The current information will simply be moved to new sections to clearly show taxable and non-taxable items. Additionally, there will be a text change on the pay statement from ‘Actual Hrs/Pay’ to ‘Regular Pay’ and from ‘Reg Pay (Sal)’ to ‘Regular Pay’.
- The current Pay Period Amounts section will be separated into three subsections: Pay Period Amounts, Other Taxable and Other Non-Taxable.
The Pay Period Amounts section will show pay associated with Regular Hours. Examples are Regular Pay, Overtime, Shift/Position-related pay and most Premium pay. All payments in this section are taxable.
The Other Taxable section will show pay that is associated with lump sum payments, not Regular Hours, but that is still taxable. Examples are Commission pay and Uniform Cleaning pay.
The Other Non-Taxable section will show pay similar to the previous, but is not taxable. Examples are Parking, Reimbursements and non-taxable TAFB payments.
- Imputed Income items will be moved out of the Pay Period Amount section to a separate section, just above the current Informational Only section. Imputed Income is taxable, but is not included in Gross Pay amounts reflected at the top of the pay statement. An example is Group Term Life.
- Each major section – Earnings, Pre-Tax, Taxes and After-Tax – will now have a Total line. These totals will help tie amounts back to the Header at the top of the statement.
Subject Matter Expert
- Frank Going, Payroll Customer Service, Frank.Going@aa.com