Bonuses..

scheming_gypsy

Possibly a difficult one to answer but how are yearly bonuses calculated?

we used to receive ours in March / April pay so they were done before the end of the tax year and taken out of the projected profit so not to get bummed off the tax man.
This year they're paying them in June pay as they have to have the actual profit figures.

Not a majorly important question but i'm just curious

zzzLazyDaisy

I am presuming that you are referring to a bonus paid by your employer?

In which case, the only way to answer your question is to see what it says in your contract of employment and/or the rules of the bonus scheme.

Usually it will say something like the Bonus is paid at the discretion of the company and is not a contractual entitlement, and that the company reserves the right to change or amend the rules of the Bonus Scheme.

scheming_gypsy

thanks but that wasn't actually the question i was asking.

Woby_Tide

but every company will calculate bonuses different is the point, does everyone get the same bonus or is it all performance based, does everyone get the same bonus regardless of current salary and grade. It's an impossible question to answer unless you work in the finance department of your company. Can they not give you an idea of how it works roughly?

Murphy_The_Cat

i feel that this comes under the grey area of 'whenever and if they want to' - unless of course it says differently in your contract.

MTC

scheming_gypsy

i'm not actually arsed about when they pay it. i just thought companies paid them out of profit before the end of the tax year, from forecasted profits, so not to pay out as much to the tax man.

Debt_Free_Chick

scheming_gypsy wrote:

i'm not actually arsed about when they pay it. i just thought companies paid them out of profit before the end of the tax year, from forecasted profits, so not to pay out as much to the tax man.

I understand your question

The answer is that the Company will pay them out after the end of their Financial Year. This is the year for which the accounts are drawn up. For many companies, this is 31 December. So .. .they would have draft accounts for the end of December 2004 and, from those figures, look to see what the profit was and then calculate the bonus.

It doesn't make any difference to the company when they pay the bonus, as they claim it a tax-deductible expense, whenever it's paid.

Does this help?

Krisp_3

Hey Debt Free Chick - you took the words right out of my mouth! This is what happens in our company...

Scheming gypsy - It may be that your compnay directors have made an executive decision not to pay out until the annual accounts have been signed off, or that the audit took place later than normal and it's just taken longer to get all the information together. (Not that you care, as you say!!!) ;-)

Murphy_The_Cat

or could it be that because no one was arsed to ask about bonuses they decided to keep it all for themselves :beer:

MTC

scheming_gypsy

Cheers DFC & Krisp..

Murphy_The_Cat

But no cheers for MTC