Use this email template to announce performance bonuses to your employees. The bonus letter should include details such as the bonus amount, the reason for the bonus, and any performance criteria used to determine it.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. An incentive bonus agreement is a contract between an employer and employee that details information about a cash bonus offered as an incentive. An incentive bonus agreement is a contract between an employer and employee that details information about a cash bonus offered as an incentive. Our company may set up incentive plans at the beginning of each year. Fully taxable as wages to the employee. School Bus Drivers Wanted. Apply for a career as an essential employee and earn your CDL with all the required training.