Guaranteed Bonus

I just received and interesting question from a client whose Plan EXCLUDES bonuses from the definition of Plan Compensation:

"Participant has a $30K/year guaranteed hours bonus to his base salary.  Owner uses the term ‘bonus’, but the spirit of the hours bonus is really to incentivize attorneys to meet a set goal of hours.  Since participant's amount is guaranteed for this year (and next), is it fair to say that this should simply be classified as regular salary?"

What does everyone think?

I would absolutely defer to the employer's definition. If the employer classifies it as a "bonus" then it should be excluded. Make the employer decide if this should be treated as a "bonus" or regular salary. Don't let the employer push you into making the decision. Just my opinion...

9 hours ago, Gadgetfreak said:

I just received and interesting question from a client whose Plan EXCLUDES bonuses from the definition of Plan Compensation:

"Participant has a $30K/year guaranteed hours bonus to his base salary.  Owner uses the term ‘bonus’, but the spirit of the hours bonus is really to incentivize attorneys to meet a set goal of hours.  Since participant's amount is guaranteed for this year (and next), is it fair to say that this should simply be classified as regular salary?"

What does everyone think?

While I have no idea what a "guaranteed hours bonus" is, you say it is intended to incentivize the employee to do something special.  When I went out as an agency manager for Ct General in 1980, I had a salary and then I was "incentivized" by certain production goals which provided WAY MORE income than my base salary. There was no question that that additional compensation was a bonus (in my mind or my boss').  As presented above (albeit, minimally explained), I don't see any difference, so I am not particularly concerned that it is a misclassification which appears to be your concern.  

Having said all that, I am 100% in agreement with Belgarath that this is the call of the client; it appears they have asked you if they are properly classifying it as a bonus (it appears that's the way they have categorized it), but if THEY have a question, it belongs to their (either) labor or ERISA atty.  Feel free to share my response if you wish, but recognize that they are no paying me and I am not their advisor, and it's worth every penny they paid. ?