Incentive Plans
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1 Post
Our current incentives are processed annually and 50% is tied to our Net Income and strategic score card; therefore, it is not guaranteed each year. If the triggers are met employees have the ability to earn 5-7% of their annual gross income.
Next year, we are considering a quarterly incentive plan for branch staff. Does anyone currently offer incentives on a quarterly basis? How are they structured and calculated? We did not want to calculate gross income quarterly; therefore, I am concerned about the tax consequences.
Comments
I am not sure what tax consequences you are referring to. We do pay a quarterly bonus to some and also a monthly bonus to others based on the gross profit for those departments during the timeframe.