The paper "The Bonus Program as an Initiative under the Company's Policies" is a wonderful example of an assignment on finance and accounting. After analysis of the company’ s performance for the year 2013, a bonus payout of 125% of the target was awarded to employees. As a department, we have been able to come up with the actual bonus figures for individual employees and company totals for accounting purposes. The total bonuses target for our employees this year based on their annual salaries and salary grade amounts to $30,360.
The total bonus accruals at the end of 2013 for all employees, based on the company accrual assumption of target plus 1% amounts to $33,760. The total employees’ payout amounts to $41,605. This figure is inclusive of individual adjustments related to performance rating, which allows an employee to earn an extra bonus in relation to performance rating. The actual increase due to individual performance increases is $ 4,255. This means, in addition to 125% of target payout awarded the target bonuses of $30,360 increased to $37, 350, due to the company’ s good performance.
They further increased by $4,255 to $41,605 as a result of individual performance ratings. Other adjustments to this year’ s bonus payout include a 39% tax imposed on individual bonus payout. The company filed a total of $16225.95 to the revenue authority as a tax on bonuses. There was a difference of $7845 in bonus accruals and actual bonus payout to the employees. This difference is due to the better performance of the company, which led to the announcement of a 125% bonus payout. The individual performance also had an effect on the bonuses because of increases awarded to employees with good performance ratings. The bonus program is a good initiative under the current company policies and has motivated employees to work harder, to ensure better company performance, which in return guarantees them some good take away home bonuses at the end of the year.