What Policies for Additional Bonuses and Criteria for Deductions Can I Apply in My Company?

Purpose

This article helps you build a bonus and deduction policy that works for your team before going live with Protiv. Clear rules keep pay fair, reduce disputes, and give workers a direct line between their effort and their paycheck.

When To Use This

Use this when you are:

Designing your company's bonus program before launch
Updating or tightening rules around bonuses and deductions
Explaining performance-based pay expectations to your crew
Seeing confusion or pushback around pay adjustments

Before You Start

Before setting bonus and deduction policies:

Decide what behaviors you want to reward 🏆 and discourage
Confirm all rules comply with local labor laws 📋
Align managers and payroll on how bonuses and deductions will be handled
Plan how you will communicate these rules to workers 📣

Quick Path

Bonuses are earned when crews beat their ProPay labor budget

Workers must meet quality, attendance, and conduct standards to stay eligible
Deductions apply when documented issues occur — not based on opinion
Optional incentives like review bonuses and MVP awards are available but not required
Certain behaviors can disqualify a worker from a bonus entirely
This is a guideline — customize it to fit your company and review it with your legal team before distributing

How Bonuses Are Earned

Bonuses are created when crews beat their ProPay labor budget. The savings become a bonus pool — split among team members based on hours worked.

Monthly Performance Bonus Earned when ProPay labor hours come in under budget. Paid monthly.

Renewal Quality Bonus Earned for maintaining quality on recurring contracts throughout the full contract period. Paid at end of contract.

Year-End Excellence Bonus Earned across all non-recurring jobs throughout the year. Cumulative labor savings drive the pool. Paid at end of year.

Example — Labor savings calculation:

Budgeted hours: 100
Actual hours used: 90
Hours saved: 10
Value of savings: $500
Bonus pool: $500 split among crew based on hours worked

Heads up: If the crew returns to fix preventable issues (callbacks, rework), those extra hours count against the budget — which can reduce or eliminate the bonus pool.

Eligibility Requirements

To qualify for any bonus, team members must meet all of the following during that pay period:

Deliver quality work with no excessive touch-ups or callbacks
Maintain attendance and punctuality standards
Follow all safety protocols and keep job sites clean
Act professionally with clients and teammates
Submit accurate, approved time entries in Protiv
Comply with all company policies during the period

Optional Additional Incentives

These are discretionary add-ons. Use them if they fit your company culture — they are not required to run Protiv.

5-Star Google Review Bonus — $60 per public review that names a crew member or project lead
MVP of the Week — $50 for workers recognized by leadership for standout performance
Referral Bonus — amount varies, paid at key milestones (e.g., 90 days, 6 months) when a referred hire stays and performs
Safety Bonus — for teams that complete a full quarter with zero incidents, violations, or lost-time events
Longevity Bonus — a small annual bonus paid on a worker's anniversary to reward long-term commitment

Bonus Deductions

Deductions are applied when documented issues occur. All deductions require evidence — not opinions. The amounts below are examples. Adjust them to fit your company before distributing to your team.

Attendance & Timekeeping

Issue	Example Deduction
Late arrival	-$20 per occurrence
Unexcused absence	-$50 per occurrence
No-show	Forfeit entire project bonus
Wrong job clock-in	-$10 per occurrence
Forgot to clock out	-$10 per occurrence
3+ timekeeping errors in a month	No bonus that pay period

Tools & Equipment

Issue	Example Deduction
Lost or damaged small tools	-$20 per incident
Lost or damaged company tools	-$50 per incident
Major equipment loss	Forfeit bonus + possible further action
2+ incidents within 30 days	No bonus that period

Client Property Damage

Severity	Example Deduction	Examples
Minor	-$30	Paint drips, light scuffs
Moderate	-$100	Overspray, damaged siding or fixtures
Major	Lose current + next job bonus	Insurance claim-level damage
2+ incidents in 30 days	30-day bonus ineligibility	-

Bonus Disqualifiers

Any of the following may reduce or eliminate a worker's bonus entirely for that period:

A quality flag on a job (callbacks, rework, customer complaints)
Going over the labor budget — no savings means no pool to share
Violating company policies around attendance, conduct, or safety
Negligent damage to client property
Timesheet errors or manipulation
No-call, no-show on a job

Important Disclaimer

The bonus structures, deduction amounts, and policy language in this article are provided as a guideline and starting-point example only. They are not legal advice.

Every company operates differently, and labor laws vary by location, industry, and workforce type. Before distributing any bonus or deduction policy to your team, you should:

Every company operates differently, and labor laws vary by location, industry, and workforce type. Before distributing any bonus or deduction policy to your team, you should:

Review the policy with a qualified employment attorney
Confirm it complies with your local and state labor laws
Customize the rules, amounts, and language to fit your specific business
Get written acknowledgment from your team where required

Protiv provides this as an educational resource to help you get started. We are not responsible for how individual companies implement or enforce their bonus programs.

Still need help? Email or call us!

Email us at help@protiv.com: This is the fastest way to get a response. You can expect a reply in 1-2 hours during business hours.

Call us at +1 848-220-1416: You can also call us during business hours, weekdays from 9 am to 6 pm EST.