5502 Annual Bonuses

For food stamp purposes, bonuses are defined as monetary payments given to an employee by an employer in addition to the pay due to the employee. For example, if a farmer gives an employee a $500 cash gift at Christmas in addition to the employee's regular pay, the $500 is considered a bonus.

Unless a bonus is provided by an employer at approximately the same time and in about the same amount each year, it cannot be considered an annual bonus. For example, if a factory has a good year and gives all of its employees a one-time $100 bonus from its profits, the $100 payment will not be considered an annual bonus because no additional payments are expected. Conversely, if a factory routinely gives all of its employees a ham and a $100 bonus at Christmas, the $100 payment would be considered an annual bonus.

Bonuses which cannot be considered annual bonuses will be excluded as income as non-recurring lump sum payments in both the prospective and retrospective budgeting process. See FSC-5503 for an explanation of the treatment of bonuses considered to be annual bonuses.