Bonus

A bonus is money you give to an employee in addition to the salary or hourly rate usually due as compensation. Bonuses can be in the form of a gratuity where there is no promise for payment (for example, you decide at the end of the year to reward employees for a job well done) or when you promise a bonus in return for a specific result (for example, you promise a specific dollar amount or percentage bonus if the organization adds 50 new clients).¹

Bonuses are often confused with commission wages. Usually, bonuses aren’t predicated upon the price of a particular product or service, which distinguishes them from commission