Our employee bonus policy explains how our company distributes bonuses to employees. We want to reward employees whenever possible since we all contribute to our company’s success with our hard work. This policy clarifies how we choose which employees to reward and how we calculate bonus amounts.
This policy applies to all regular full-time and part-time employees and employees with contracts of [one year and more.] Seasonal employees, interns, and temporary employees with a contract of less than [one year] are not eligible for bonuses.
We may modify this policy and our bonus plans at any time without notice.
Only written promises of bonuses will be considered valid. If your manager or another executive verbally promises you a bonus, they can not follow through unless they put it in writing and HR approves it.
Bonuses can be either discretionary or non-discretionary:
One important difference between discretionary and non-discretionary bonuses in the U.S. is that non-discretionary bonuses must be included in overtime pay calculations. Our company will follow its legal obligations.
Our company rewards employees for outstanding individual performance, as well as their contributions that help us achieve company goals.
For this reason, we award bonuses in three forms:
Our company may award lump-sum bonuses (one-time bonus payments) to employees who show exemplary performance. We define “exemplary performance” as:
Exceeding goals, either financial or non-financial.
Performing additional duties from what is expected.
Serving as a good example of professional behavior to other employees (e.g. teamwork, ethics, leadership.)
When managers know their team member deserves a bonus, they should send a formal written recommendation to their Department Head and HR, explaining how their team member showed exemplary performance.
Note: Lump-sum bonuses are discretionary.
Our company’s policy gives the executive team the ability to decide on year-end bonuses for all employees.
There are two conditions for this bonus:
If these two conditions are satisfied, then our company will give bonuses to employees who:
We will pay out bonuses according to this tiered system:
These plans may involve:
Keep in mind that bonuses are subject to taxation (local, state and federal taxes.)
This policy applies to all regular full-time employees