Bonus Plan

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Bonus Plan

The policies a company follows in paying out bonuses. The bonus plan includes details on eligibility, the circumstances under which bonuses are paid and how amounts are determined. For example, a bonus plan may state that employees are eligible for a bonus after a certain number of months with the company when the company collects more than a certain percentage of its accounts receivable.
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the year of services), the employer may be using an improper accounting method and (assuming it does not want to revise its bonus plans to eliminate the retained discretion) may have to request an accounting method change to correct the treatment and protect itself from exposure for prior-year treatment.
com)-- Most organizations struggle with how to develop a bonus plan that “works,” according to Tom Miller, president of The VisionLink Advisory Group, a compensation consulting firm headquartered in Irvine, CA.
Legal & General Early Bonus Plans 14, 15 and 16 are capital at risk products.
The IRS indicates that any change in an employer's treatment of bonuses to conform with this new guidance is a change in method of accounting and must be handled in accordance with applicable procedures; however, the ruling provides employers with an opportunity to modify their bonus plans without removing the employment requirement to obtain a current deduction for accrued bonuses paid within 2 1/2 months of the tax year-end.
Most companies have one or more compensatory bonus plans for employees.
Handling Tiered Bonus Plans with Nested IF Statements
The nickel bonus plan is one of the bonuses negotiated between the United Steelworkers and CVRD Inco in its collective agreement.
Executive Bonus plans, also known as a '162 Bonus Plan,' and REBAs, can be an excellent option for both the employer and employee.
An analysis of the sample group's CEO bonus plans indicates that 36% of companies with a bonus plan based on specific performance measures don't disclose any information on the performance standard used to evaluate CEO performance for the bonus award decision.
The point is, the alternatives are not just restricted stock, but premium options, discount options and indexed options, or shifting equity incentives into bonus plans that can be targeted to measure and more precisely reward business unit performance.
The target-setting systems cited earlier for bonus plans are helpful here as well.
The carrier - which operates for both United Express and Delta Connection - introduced salary cuts of between 5% and 10% from 1 April 2003 and has also begun eliminating bonus plans.