Cash Bonus
Categories: Company Management, Accounting
It would be great to be a restaurant or bar owner on the day that Wall Street investment bankers receive their cash bonuses for the year. The same holds true for company towns where almost everyone works for the same employer, who still hands out bonuses.
A cash bonus is a sum of money given out to reward an employee for good performance. Perhaps they voluntarily put in overtime to color-code the company tracking sheets, or to pick up the CEO's dry cleaning. Or they simply met all their goals or quotas for the month, quarter or year. The amount given can vary from year to year, but all cash bonuses are still taxable as ordinary income.
