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Are bonuses considered fringe benefits???

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increasemarket

Junior Member
What is the name of your state?What is the name of your state?Michigan

Are bonuses considered fringe benefits? If a lower salary was paid due to the inclusion of a bonus program that was paid semi-annually is employee to be paid bonus upon termination? 5 of 6 months of work were completed of the bonus period. Nothing is stated in company policy regarding bonuses.
 


Beth3

Senior Member
Are bonuses considered fringe benefits? It depends. (Not much of an answer but it's the truth.)

If a lower salary was paid due to the inclusion of a bonus program that was paid semi-annually is employee to be paid bonus upon termination? that is entirely up to the employer.

5 of 6 months of work were completed of the bonus period. Most bonus plans require the employee to work the required time period in entirety, meet whatever performance standards are required, AND be employed at the time bonuses are distributed in order to be eligible for payment. If you are asking whether some law dictates that you must be paid a partial bonus for working five months, the answer is no.
 

increasemarket

Junior Member
Michigan
So even if there aren't any stated terms regarding payment of bonuses in the employee handbook the bonus wouldn't have to be paid?
 

pattytx

Senior Member
Not unless the provisions in the employee handbook rise to the level of a valid, enforceable contract, which handbooks very rarely do. In fact, most employee handbooks specifically include a disclaimer that they do not imply a contract, and that policies and provisions in the handbook may be changed at any time, and exceptions may be made, by management at their discretion.
 

Beth3

Senior Member
increasemarket said:
Michigan
So even if there aren't any stated terms regarding payment of bonuses in the employee handbook the bonus wouldn't have to be paid?
Absent a contractual guarantee, your employer can cancel the bonus plan any time they wish to as well as change the terms of the plan. As I said above though, it would be unusual for an employer to pay out a bonus to an employee who, at a minimum, did not work for the entire period required under the terms of the plan/policy.
 

Gadfly

Senior Member
Bonuses are just that. A bonus. They are not expected. They are set up by an employer as additional incentive to meet specific goals of the employer. They can change at any time as the needs are met.
 

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