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in this article, we take a comprehensive look at how bonuses work by defining what they are and listing 12 of the most common types of bonuses. it’ s typically based on performance, company profits, or other criteria and is. while many companies provide monetary ( cash) bonuses, a bonus can take other forms. bonuses are supplementary to the agreed- upon hourly rate or annual salary an employee earns. executives receive higher bonuses that can multiply based on performance, while most employees earn bonuses equal to 1% to 5% of their overall salary. however, it’ s best not to repeat the mistakes of clark griswold’ s boss in. what are the types of employee bonuses? bonuses are compensation paid to an employee. a bonus is a financial compensation that is above and beyond the normal payment expectations of its recipient. bonus pay is a type of supplemental pay. while employers award bonuses for different reasons, there are many different types. bonuses may be awarded by a company as an incentive or to reward good performance. an employee bonus is pay awarded to an employee in addition to their regular salary or pay rate. you may get a bonus one year but nothing bonus the next, so be sure you understand how your employer selects people to receive a year- end bonus. each company’ s bonus structure depends on the size and net worth of its business. in most cases, employees earn bonus pay as an award for excellent work or as an end- of- year reward. the most common type of bonus is given annually based on an employee’ s annual base salary. what are bonuses? each employee is assigned a target bonus, in most companies, that reflects a possible bonus at the end of the year. it is extra money that an employer gives to an employee in addition to their regular salary or wages.
