Bonus pay is a benefit paid to employees on top of their regular salary. Think of it as a “thank you” to someone who has gone above-and-beyond or achieved a specific goal in your practice.

You may get a bonus one year but nothing the next, so be sure you understand how your employer selects people to receive a year-end bonus. Executives receive higher bonuses that can multiply based on performance, while most employees earn bonuses equal to 1% to 5% of their overall salary.

When should an earned bonus be paid? California law requires an earned bonus to be paid on the regular payday for the payroll period in which it was earned.