Variable Compensation Bonus. It is the portion of your regular salary that isat risk. Jan 06 2014 To explore this let us focus on the distinction between an incentive a bonus and a reward in the context of variable compensation for employees.
An incentive is a contractual agreement written or verbal between the employer and the employee in which the employer sets certain predetermined goals upon achieving which the employee is entitled. They are considered as backward in their orientation. Overtime Calculations for Non-Exempt Employees Due to Bonus.
It is the portion of your regular salary that isat risk.
A bonus is a payment made in addition to the employees regular earnings. When an employer taxes your bonus using the percentage method it must identify the bonus as separate from your regular wages. Variable Compensation means the amount of an Executives annual bonus under the Companys Annual Incentive Compensation Plan the amount of an annual or long-term bonus under any other plan the Administrative Committee determines is eligible for deferral under this Plan or any other form of non-Salary compensation the Administrative Committee determines is eligible. Make it easy on yourself and save time with a template that is already set up with all the formulas.
