Comprehensive guide on the format and template for an annual bonus announcement letter, informing employees about their bonuses. PERIODIC BONUS PLANThe Periodic Bonus Plan is designed to reward a lawyer for his extra efforts that benefit the entirefirm.This fact sheet provides general information regarding bonuses and the regular rate of pay under the FLSA for non-exempt employees. Annual Bonuses: Paid out in the first quarter of the following fiscal year. This timing allows for a comprehensive review of the previous year's performance. 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. Performance criteria or goals must be specified in the institutions plan. A compensation plan outlines salaries, bonuses, and equity. Total rewards plans (comp plus benefits) help companies attract and retain employees.