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Janet Berry-Johnson is a CPA with 10 years of experience in public accounting and writes about income taxes and small business accounting for companies such as Forbes and Credit Karma.
Article Reviewed on May 05, Article Table of Contents Skip to section Expand. Bonuses Are Supplemental Wages. How Are Bonuses Taxed?
Tax Treatment of Huge Bonuses. Are There Exceptions? Incentive Payments Are Different. Which Method Is Best? Article Sources. Continue Reading.
Any will work as armour does not provide crush bonus, but Bandos tassets gives Strength bonus. Requires completion of Dragon Slayer II.
Requires 60 to equip. Requires 75 and 75 to equip. Requires 75 and 65 to wear. The 3rd age mage hat provides the same bonuses and only requires 65 and 30 to wear, but has no Melee Defence or Magic damage bonuses.
Requires 70 and 30 to wear. Requires 65 and 75 to wear. Requires 65 , 75 , and 70 to be worn. Seers ring i. Requires 75 to wield.
Requires 70 and to wear. Requires 75 Hitpoints to use. Requires 75 and to wield. Requires completion of Recipe for Disaster. Archers' ring i.
Requires 70 to wield. Uses javelins as ammunition. Requires 75 to be worn. Requires 75 to wear. Ancient wyvern shield fully charged.
The Zamorakian spear has the same bonuses, but is two-handed. Requires 75 and to equip. Requires 30 and 30 to be equipped. Any Castle Wars Halo.
Halos can be purchased for 75 Castle wars tickets. Spectral spirit shield. They may be based on a predetermined formula, or on factors such as attendance.
They are generally included in the regular rate of pay, which is specified in the employee offer letter, in the employee personnel file, or a contract.
Say, for example, an employer provides an incentive pay plan for employees who achieve certain performance benchmarks. Since the employee knows what is required of them in order to receive the bonus, it would be a nondiscretionary bonus.
The Fair Labor Standards Act FLSA states that all employee compensation is included in the base rate of pay, which is used to determine overtime pay, but that some bonuses may be excludable if certain criteria are met:.
The FLSA also explains that some employees are exempt from its overtime rules if they are:. There are several different instances in which a company may issue bonus payments.
Executives , especially those in senior roles, may have contracts that require the company to pay out bonuses.
These bonuses are often dependent on the company meeting specific revenue targets. The employer may also base them on different criteria such as sales, employee retention, or meeting growth goals.
This means that the payment or non-payment of bonuses is a matter entirely for the employer to decide, and to negotiate with employees.
If an employer who presently does not pay bonuses of any sort wishes to continue on that route he can do so, without fear of being accused of unfair labour practice.
It is important to note that certain bargaining council agreements do make provision for the payment of bonuses. In the case of Bargaining Council and Collective agreements employers will have to respect these agreements.
However in the case of the employer who presently pays bonuses the situation is slightly different because those employees have now come to expect the payment of the bonus as a right or entitlement.
It is essential that in every employment contract, the terms and conditions applicable to the payment of bonuses must be specifically and clearly stated, even to the extent that if it is a Company policy not to pay bonuses of any sort, this fact must also be stipulated in the employment contract.
Therefore, those employers who now wish to change the status quo regarding payment of bonuses , either by paying less, or by paying at the different time of the year than what has been the case in the past, or by splitting what was an annual bonus into two separate payments, will have to consult with the employees, explain the problems, and try to get them to accept the new system.
This is not to say that a few disgruntled employees will not proceed with a claim of unfair labour practice, but that is a problem that will not prove to be insurmountable.
In summary, be fair, be equitable and advise your employees in good time if there is to be a problem with the payment of bonuses or if there is to be a departure from the established payment procedures.
We will deal with the three common types of bonus, namely the Christmas bonus or 13th cheque as it is known, the performance bonus and the production bonus.
The 13th cheque or Christmas bonus. This bonus is normally classed as a gratuity - in other words, a payment of gratitude by the employer to the employee in recognition of a job well done, or if you like, going the extra mile.
However, over the years most employees have come to expect the payment of the 13th cheque as a right or entitlement, or as a condition of employment.