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 bonus will be paid in one lump sum in a separate check on the next regularly scheduled pay date.This page contains Annual Bonus clauses in business contracts and legal agreements. We have organized these clauses into groups of similarly worded clauses. 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. This Bonus Policy outlines the criteria and process for awarding bonuses to ensure transparency and fairness. To submit an individual STAR Award please use the spreadsheet format in the link below. The signing bonus is wages (regardless of whether the employee has started working) and is taxable and reportable at the time.