A cash bonus is a financial reward given to employees in addition to their regular salary. Companies often use cash bonuses to motivate staff, recognize outstanding performance, or achieve specific goals. These bonuses can vary in amount and frequency, depending on the organization's policies and the employee's contributions. Cash bonuses are typically considered taxable income, meaning that employees must report them on their tax returns. They can be awarded in various forms, such as year-end bonuses, performance bonuses, or signing bonuses for new hires. Employers may also use cash bonuses to enhance employee satisfaction and retention.