What qualifies as a bonus for an employee?

A bonus for an employee is typically considered an additional payment awarded for achieving specific goals or targets. This structure of performance-based compensation is designed to incentivize and reward employees for their contributions toward the company's objectives. Bonuses can serve various purposes, such as boosting morale, enhancing productivity, or promoting healthy competition among staff.

In the context of the other options, a raise in base salary represents a permanent increase in an employee's regular earnings rather than a temporary reward. An increase in commission rates also relates to a change in the compensation structure but does not constitute a bonus, as it alters ongoing earnings rather than providing a one-time incentive. Lastly, a share in profit ownership implies equity participation, which is distinct from a bonus, as it ties the employee's compensation to long-term company performance rather than specific short-term achievements. Thus, the additional payment for reaching a target aligns precisely with how bonuses are generally defined in the corporate context.