---
title: "What Is Bonus program? Dental Practice Glossary"
description: "A plan that pays staff an extra amount in addition to base pay for set results, such as production, collections or quality, and that falls under wage and tax..."
url: https://joncopeland.multisites.ai/glossary/bonus-program
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Team and HR

# Bonus program

A plan that pays staff an extra amount in addition to base pay for set results, such as production, collections or quality, and that falls under wage and tax rules.

A bonus program pays staff an extra amount when set goals are met. The IRS treats bonuses as supplemental wages, defined as wage payments to an employee that are not regular wages. Employers must follow tax withholding rules for them.

Dental practices may base a plan on production, collections, patient measures or team goals. Any plan must meet wage and hour law. State law and the plan's wording matter.

A bonus program is one part of [team compensation](https://joncopeland.multisites.ai/glossary/team-compensation) and may connect to a [performance review](https://joncopeland.multisites.ai/glossary/performance-review). Employers should ask an attorney and a CPA to review a plan before using it. This entry defines the term and recommends no design.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Team compensation](https://joncopeland.multisites.ai/glossary/team-compensation)
-   [Performance review](https://joncopeland.multisites.ai/glossary/performance-review)
-   [Collections](https://joncopeland.multisites.ai/glossary/collections)
-   [Production](https://joncopeland.multisites.ai/glossary/production)

## Sources

1.  [IRS, Publication 15 (Circular E), Employer's Tax Guide](https://www.irs.gov/publications/p15)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)