Bonus

Bonuses are a form of compensation that employers use to reward employees for their performance. They can be given for a variety of reasons, such as good performance or reaching a sales target. A bonus to employees is not part of their salary and therefore isn't taxable income; however, the amount must be reported on your W-2 form at tax time.

They are usually given for exceptional performance. Bonuses can also be given at the end of the year as an incentive to keep employees motivated and happy during their busiest time of year.

Bonus in a company can also be awarded for other reasons, such as for a promotion or a new job. Some companies don't give bonuses at all--this is especially true in smaller businesses

A bonus is a payment made to employees in addition to their regular wages or salaries. There are many types of bonus for employee. It can be one-time payments or annual payments that occur on an anniversary date. They may also be paid in cash, or in stock (shares of company stock).

Bonuses can be paid out based on discretionary and non-discretionary standards.

Discretionary bonuses are given at the discretion of the employer, meaning that they are not guaranteed and can be given out at any time during the year (or not at all). For example, you might receive a discretionary bonus for working on special projects or performing well in your job over several months.

Non-discretionary bonuses are also known as «steady earners» because they're given out automatically each year based on seniority or tenure with a company — they aren't tied directly to performance or other factors like discretionary bonuses would be.