How to calculate bonus pay depends on the bonus type, tax implications, and payout method. Learn the various calculation methods to ensure labor law compliance and proper employee payment.
How to Calculate Bonus Pay for Employees: 2025 Ultimate Guide
Calculating Nonperformance-based Bonuses Nonperformance bonuses are an easy way to make sure all employees share in the incentives, and it simplifies gross bonus amount calculations for you. Some common bonuses not based on performance include percent of salary, holiday bonuses, retention or sign-on incentives, and referral bonuses. Percent-of-salary bonus This is one of the most…