The bonus letter should include details such as the bonus amount, the reason for the bonus, and any performance criteria used to determine it. Comprehensive guide on the format and template for an annual bonus announcement letter, informing employees about their bonuses.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. This fact sheet provides general information regarding bonuses and the regular rate of pay under the FLSA for non-exempt employees. Cash bonuses may be awarded under a formal incentive plan or based on management's decision to grant individual employees or a pool of employees a cash bonus. A bonus plan is an agreement between the employer and employee to pay out a predetermined amount of money based on performance. May a supervisor require that an employee with a disability perform a job in the same manner as a nondisabled employee? The terms of the employee handbook are clear, and I am presuming they form part of your contract. This will contribute to a smoother onboarding process and help employees plan their finances better. Benefits. Should I report hourly wage rates or annual salaries?