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Companies offer bonuses to attract candidates for employment, retain, motivate, and reward employees, and increase productivity. There are many different types of bonus plans employers can use to incentivize employees. What companies offer will depend on the company policy and the job you’re working at.
The tax on bonuses can vary based on where the business is situated. There are different taxes at every level of government which include both the state and local taxes. And is it critical to abide by them or else the organization can be subjected to hefty fines.
Performance bonuses are an effective link between extrinsic motivation and organizational performance to promote, recognize, and encourage outstanding performance and contributions in an organization.
