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Employee Bonuses: If an employee started mid-year, are you paying them a bonus?

Rose Robbins's Profile

If so, are you paying a full bonus? Or calculating a bonus amount based on the time actually worked in 2013?

Answers

Chris Shumate
Title: Accounting Manager
Company: Dominion Development Group, LLC
LinkedIn Profile
(Accounting Manager, Dominion Development Group, LLC) |

Where I work if you were hired before, I think, October 1 you receive the set percentage that everyone else does of you earned wages. So someone started September 30 and earn $12,500 for the last quarter they would get the same 10% (as an example) as the employee that worked all year earning $50,000. Employee A receives $1,250; employee B receives $5,000.

If you were hired in November or December then no bonus is paid.

Anonymous User
Title: CFO
Company: Local Government Agency
(CFO, Local Government Agency) |

You could go either way. But whatever you do, codify it into policy and be sure to do it equitably for all.

In my own experience, my previous employers always used a pro rata formula for things like this based on length of service during the year.

Sara Voight
Title: Controller
Company: Critical Signal Technologies, Inc
(Controller, Critical Signal Technologies, Inc) |

My experience has been (on the receiving end) that bonuses were only paid to employees if they had an entire calendar year with the company. Additional language indicated that exceptions could only be made with the CEO's approval. In most cases, a bonus was given based upon length of time with the company. The employee's expectations were set at the minimum (no bonus until you have been here a year), and then a share was provided to recognize effort and being part of the team.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Two seperate, but connected issues: Pay a bonus and how much.

Length of time with employer should not necessarily eliminate a bonus. A bonus is what have you done for us above and beyond the call of duty.

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