Performance bonuses.
Bonuses that are based upon meeting certain performance goals are earned for services rendered and are reportable compensation. If a bonus was earned over a specified period of time, it should be prorated for reporting purposes.
Example: | An employer pays each employee in the work group an additional $100 if the work group had no work related accidents in the preceding year. Remaining accident free is a performance goal. Therefore, the payment is for services rendered and qualifies as reportable compensation. The bonus should be prorated over each of the preceding twelve months during which it was earned. |
[Statutory Authority: Chapters
41.32, 41.34, 41.35,
41.50 RCW. WSR 01-01-059, ยง 415-110-453, filed 12/12/00, effective 1/12/01.]