Companies that offer annual bonuses can do so in a variety of ways. Some offer profit sharing, which rewards every employee for a job well done after a successful quarter or year. Typically, an employer will set aside a predetermined percentage of its payroll budget (between 2.5 and 15 percent) and divide that amount among employees in the form of bonuses. This type of bonus does not necessarily take into account an individual's performance, since every employee receives either the same bonus or a bonus equivalent to a percentage of base salary. It's not uncommon, however, for a company to award annual bonuses to top-performing employees only and base the amount of the bonus on an individual's achievements or performance, for example.