You can employ a bonus letter template to formally recognize and reward an employee's outstanding performance or the achievement of specific, measurable goals. This bonus announcement sample letter may be used as a memo to all workers or to an individual employee.An incentive bonus agreement is a contract between an employer and employee that details information about a cash bonus offered as an incentive. Any individual wishing to be considered for employment as a cadet in the San Antonio Police. What is a Bonus Plan? A bonus plan is an agreement between the employer and employee to pay out a predetermined amount of money based on performance. It conveys appreciation, acknowledges hard work, and instills a sense of pride in the recipient. This employee bonus policy template is ready to be tailored to your company's needs and can be a starting point for setting up your employment policies. Total compensation may vary based on additional services, including call coverage, administrative services, performance bonus, etc. Employee compensation is reviewed on an annual basis in conjunction with performance.