12-08-2008, 03:35 PM
My company gives a bonus that is based on a percentage of our earnings before taxes. Since the 1930's. It's been as high as 150% of your years pay back in the 60's. This year was an awesome year, and it's going to be high. Next year will really suck, tho.
They do, however, pay Health Insurance premiums out of the bonus, and Uncle Sam takes a straight high percentage (Bonus income is taken off at a higher rate). Also the going rate for workers is lower than average- the bonus is an inventive. Bonuses are based on performance as well, so there's some incentive math there too.
It works. This is a highly motivated and productive workforce. And we're a heavy manufacturing company in Ohio, and making a profit.
They do, however, pay Health Insurance premiums out of the bonus, and Uncle Sam takes a straight high percentage (Bonus income is taken off at a higher rate). Also the going rate for workers is lower than average- the bonus is an inventive. Bonuses are based on performance as well, so there's some incentive math there too.
It works. This is a highly motivated and productive workforce. And we're a heavy manufacturing company in Ohio, and making a profit.