Bonuses are one of the few types of employee incentives that are actually legal. They are also a favorite with employers because they help motivate employees and increase productivity. There are many different kinds of bonuses, but the three most popular ones are cash, gifts and paid time off. A bonus is generally given to employees as part of their regular salary or weekly wage as part of their overall compensation. Some employers also give out bonuses for good attendance and/or high sales numbers.

In Canada; where most businesses are organized along national lines, employers pay bonus as a company perk. This means that an employee earns a certain amount of bonus each time they reach a particular minimum sales target. The requirements of the bonus are specified by the employee’s contract, and depending on the industry, companies may have slightly different procedures. Many private sectors, however, offer actual cash incentives, which are much easier to claim.

Bonuses have been a long-standing practice in countries like Canada and the United Kingdom, where workers enjoy much higher compensation than in the U.S. They can be given for a range of reasons, such as completing a survey that gives the employer an insight into what their customers really want. Another popular form of bonus is a commission on the sale of a product or service. Some employers, such as in the hospitality industry, will give their employees a point based cut of the total price of the item or service sold.

Another type of bonus is an investment incentive;

Often, an employee’s bonus is the difference between what they earn in the employee’s last 12 months of employment and the total compensation of the year. Employers often prefer this type of bonus because it is tax free and does not require a considerable amount of investment. For example, if the employee has five years of service with the company and reaches the end of the year, the employer can elect to match the interest on a one-year annuity. This type of incentive can be very useful for an older employee who might have considered retiring but would continue working until they were older.

BONUS Deals: can be either actual cash bonuses or the purchase of an eligible pre-tax retirement plan. Many people choose to receive a BONUS during a time when they have not yet reached retirement age, so it makes perfect sense for them to receive a pension or other form of non-taxable income, to supplement their income while they are still working. Many companies also offer bonuses to workers who are performing exceptionally well, regardless of whether they are receiving retirement pay. These incentives are extremely valuable to the most dedicated individuals.

A bonus means a small portion of your regular salary, often no more than ten percent, of your regular or daily wages. In comparison to the value of the actual salary you receive, a bonus is a very minor disbursement. It is, however, a necessary one in order to maintain the efficiency of an organization.