What is a bonus statement?

Purpose

A bonus statement is the official record of a worker’s pay for a specific period. It shows how their earnings were calculated and whether they’ve been paid. This keeps pay transparent and accurate for both the company and the worker.

When To Use This

Use this when you need to:

• Understand what makes up a worker’s bonus payout

• Explain pay details to a worker

• Review bonuses, deductions, or wage rates before or after payout

• Track pay history across pay periods

Before You Start

Before reviewing a bonus statement:

• The worker must have completed work tied to bonuses or adjustments

• Line items such as bonuses or deductions must exist

• The statement must be open or paid to show meaningful data

Step-by-Step Instructions

Step 1 — Review the net payout

Look at the net payout amount. This is the total the worker earns or owes for the pay period after all bonuses and deductions are applied.

Step 2 — Check the line items

Review each line item on the statement. These can include:

• Bonuses from completed work

• Deductions or penalties

• Company or rounding adjustments

• Overtime adjustments

Each line item affects the final payout.

Step 3 — Understand the wage calculations

Bonus statements automatically calculate and store three wage metrics:

• Base Wage
  The average hourly rate based on actual time worked

• Bonus Rate
  Extra earnings per hour coming from bonuses

• Effective Wage
  Total hourly pay including base wage plus bonuses

These numbers update automatically when line items change.

Step 4 — Confirm the statement status

Every bonus statement has a status:

• Open
  The statement is still being processed. Line items can be added or edited.

• Paid
  The worker has been paid. The statement includes the payment date.

• Void
  The statement was cancelled. All line items are marked void and no payout occurs.

Examples

• A worker completes several jobs and earns performance bonuses. Those bonuses appear as line items, increasing their bonus rate and effective wage.

• A deduction is added for an adjustment. The net payout updates automatically to reflect the change.

Common Mistakes & How To Fix Them

• Confusing net payout with hourly wage
  Fix: Net payout is the total dollars paid. Check effective wage to see hourly earnings.

• Editing a statement after it’s paid
  Fix: Paid statements can’t be changed. Reopen or create adjustments if corrections are needed.

• Missing deductions or bonuses
  Fix: Review all line items before payout while the statement is still open.