Hide Topic Navigator
Bonus Payments (including Incentive Compensation)
National Summary
Many employers offer their employees various types of bonuses—including performance awards, gain-sharing systems, and profit sharing. While bonuses are generally used to reward performance, awards are not directly tied to job performance and are usually offered for perfect attendance, for providing new hire referrals, to recognize an outstanding employee, to motivate employees to work safely, or to reward employee suggestions. There are various legal and tax considerations for employers giving awards and bonuses to their employees. Promised bonuses may be construed as contracts by the courts, while the Fair Labor Standards Act (FLSA) requires employers to count nondiscretionary bonuses in an employee's regular rate of pay for the purpose of calculating overtime.
Summary for [Your State]

Related Topics

Resource Centers
Resources
TopicTypeTitleDate 
16385timesavers.aspxBonus PaymentsPolicies Bonus Payments 10/24/2019
102364timesavers.aspxBonus PaymentsChecklists Bonuses Checklist 12/21/2017
1558timesavers.aspxBonus PaymentsForms Merit Rating Review Form 09/06/2006
10989analysis.aspxBonus PaymentsAnalysis Bonus Payments 04/20/2004
8925timesavers.aspxBonus PaymentsPolicies Employee Service Awards 09/30/2003
2139timesavers.aspxBonus PaymentsLetters Announcement of a Bonus Payment 01/01/2000
3050state_comparison_charts.aspxBonus PaymentsGuidance Communicating ESOP advantages 01/01/2000
2220timesavers.aspxBonus PaymentsPolicies Employee Referral Program 01/01/2000
2660state_comparison_charts.aspxBonus PaymentsGuidance Employee Stock Ownership Plans (ESOP) 01/01/2000
3062state_comparison_charts.aspxBonus PaymentsGuidance Executive Short-term Variable Pay Programs 01/01/2000
2157timesavers.aspxBonus PaymentsLetters Explanation of Individual Bonus Payment 01/01/2000
3046state_comparison_charts.aspxBonus PaymentsGuidance Gainsharing 01/01/2000
3047state_comparison_charts.aspxBonus PaymentsGuidance Objective-Based Pay 01/01/2000
3051state_comparison_charts.aspxBonus PaymentsGuidance Pay At-Risk 01/01/2000
2653state_comparison_charts.aspxBonus PaymentsGuidance Profit-Sharing Plans 01/01/2000
1199timesavers.aspxBonus PaymentsPolicies Progression Pay Increases (Hourly) 01/01/2000
3061state_comparison_charts.aspxBonus PaymentsGuidance Sales Team Incentives 01/01/2000
3063state_comparison_charts.aspxBonus PaymentsGuidance Sign-On Bonuses 01/01/2000
3053state_comparison_charts.aspxBonus PaymentsGuidance Team-Based Rewards 01/01/2000
3060state_comparison_charts.aspxBonus PaymentsGuidance Variable Pay Linked to Competencies and Performance 01/01/2000
CT-WEB06
Copyright � 2021 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://HR.BLR.com
Document URL: http://hr.blr.com/HR-topics/Compensation/Bonus-Payments