A year end bonus is a sum of money paid to employees at the end of the year. It’s a delightful thing to receive, but it can’t always be expected. In fact, fewer companies now give a year end bonus, or as it is sometimes called a holiday bonus, than was done in the past. With greater strain on many companies, employees may just count themselves lucky if they still retain their job at the end of the year.

There are some jobs that come with built-in year end bonuses. These may be calculated in numerous ways. A bonus could constitute a percentage of hours billed, a percentage of sales or a percentage of the company’s profits for the year. The year end bonus is actually subject to many different forms of calculation. Some bonuses may be based on what the company can afford, how many years you have worked for a company, or on merit.

Amount of these bonuses vary too. Employees who’ve worked longer for a company may get a larger bonus, or employees with higher standing might get more. Other companies give the same amount to each employee, which can range anywhere from a couple of bucks to many thousands of dollars.

A few things should be understood about the year end bonus. This money is subject to taxes and part of an employee’s pay. Employers may want to make sure each worker gets a certain amount of “cash in pocket” and may calculate the taxes on a bonus so an employee receives a set amount. This isn’t always the case, and since the bonus constitutes extra money received, it may be taxed at a higher bracket.

Though year end bonuses are often given at the end of the year, some employees receive bonuses at the end of fiscal years, which can vary according to companies. Accounting firms may choose to give bonuses after most yearly taxes are filed on 15 April (in the US), instead of giving a holiday or year end bonus. This is also a common practice at tax law firms.

Unless you do have a job that specifies you’ll get a year end bonus, and even if your company has given bonuses in the past, don’t make the mistake of assuming you’re going to get an extra check, or a certain amount. Though these extra gifts are wonderful, and can often help cover things like holiday expenses, don’t budget on the expectation that you’ll have a bonus to spend. Also, you may not want to discuss the amount of your bonus with other employees, since not everyone gets one, or sometimes people get different amounts. You don’t want to contribute to bad feelings in the workplace by showing off a much larger bonus than your coworkers, and you may feel bad on your own if everyone gets a bigger bonus than you. It’s better not to discuss bonuses at all, unless you know the company has a specific plan for doling them out that includes all members of the company.

There can be bad feelings when people have received bonuses in the past and don’t get a year end bonus. Especially since raises in many companies have been reduced, and some companies have been forced to forgo yearly raises, it can make an employee feel very bad when a bonus is not received. As an employee’s salary remains the same around rising prices like for gas or groceries, forgoing the year end bonus can suggest that the employee’s work is not worth as much, since it is being devalued by rising prices. Compounded with lack of raises, failing to offer bonuses to employees who are devoted to their companies and who have worked hard, may make people feel undervalued by employers.