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Part A Abstract Employee bonuses are further payments used to drive performance, reward contribution and entice talent. Employers who make investments time in designing the right framework considerably reduce their exposure to claims and create a stable foundation for performance-related reward. From a financial perspective, bonuses are topic to PAYE and Nationwide Insurance in the same way as other earnings, so employers need to price range accurately and ensure payroll processes are correct. The operation of bonus schemes carries monetary, legal and sensible implications. They can be a cost-effective approach to reward workers as a end result of they give employers flexibility to answer monetary situations with out committing to a long-term pay rise.

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