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This signifies that workers are required to report their bonuses as a part of their taxable earnings once they file their taxes. In the United States, bonuses are considered taxable income by the Inside Revenue Service (IRS). Performance bonuses are given for exceptional work and could be given as annual bonuses, spot bonuses, or milestone bonuses. A company may use bonuses to reward achievements, to show gratitude to employees who meet longevity milestones, or to entice not-yet staff to affix a company’s ranks.
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