Human resources
Bonus letter template (US)
A general template under US law. Laws differ from state to state, so check it against your state's law or with a lawyer licensed there. We are not a law firm and do not give legal advice.
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Preview — US standard
Bonus Award Letter
Company Name
Company Address
Date: Letter Date
Employee Name
Job Title
Dear Employee Name:
In recognition of Reason for Bonus, such as Strong Performance in the Year or Completion of a Project, we are pleased to award you a Type of Bonus, such as Discretionary, Performance or Retention bonus.
Bonus Details
• Amount: $Bonus Amount, before required tax withholdings
• Payment date: Payment Date
• Paid by: Payment Method, such as With Your Regular Paycheck
• Performance period covered: Performance Period
The bonus is supplemental wages and is subject to federal, state and local income tax withholding, Social Security and Medicare taxes, and any other withholding the law requires. Retirement Plan Treatment, such as Whether 401(k) Deferrals Apply
Conditions
Bonus terms (keep one, delete the other):
• One-time award: this bonus is a one-time discretionary award, and it does not create any right to future bonuses.
• Retention bonus: to receive this bonus, you must remain employed through Retention Date. If you resign or are terminated for cause before then, you must repay Repayment Terms, as far as state law allows.
This letter does not change the at-will nature of your employment.
Thank you for your hard work and contribution to Company Name.
Sincerely,
Manager Signature
Manager Name
Manager Title