Year-End Bonus

Year-End Bonus – These are part of employee recognition and rewards systems. Some refer to them as holiday bonuses and they are extra, not to be expected. Whether the metrics and criteria for securing/awarding it are hours billed, % sales, portion of the profits, it is to be shared, savoured and enjoyed by those whom receive it.  It is taxed at higher rates in higher bracket. Sometimes these are paid out in the beginning of the following year (January/February), with tax-filings in April. Additional compensation paid at the end of the year, above and beyond other recognition, performance, raises and compensation increases. The annual or year-end bonus can take many forms. (i) ad hoc payment, (ii)  institutionalized, industry/professions (finance, banking sectors), (iii) celebrating record performance year spreading and sharing the wealth between the professionals are expected and customary (iv) discretionary year-end bonus based on qualitative considerations, or a (v) performance based year-end bonus as measured by quantitative criteria