Length of Service Bonus (LOS)

The length of service (LOS) bonus is calculated using the total Service Station commission revenue generated by you during a calendar year.  To determine your LOS bonus, first find out how many years you will have worked for Service Station at years-end.  For partial years of service, rounding will be applied to your start date to determine whether the first calendar year in which you were hired will count towards the number of years worked.  Remember, you must still be employed by Service Station at the end of the year (December 31st) to be paid your LOS bonus.  Below are a couple of examples of how rounding is handled:

 

  • Billy was hired at Service Station on 6/16/20.  Because the time that will have elapsed between his hire date and the end of the year is less than 6 months or 0.5 years,  Billy will not see his first LOS bonus until the end of 2021.

 

  • Sally was hired before Billy on 5/5/20.  Because over 6 months will have elapsed by the end of 2020, Sally will see an LOS bonus at the end of the year at the 1-year level on the grid below.

 

LOS Bonus Grid

LOS (years) % of Rev
0 0.00%
1 0.40%
2 0.60%
3 0.80%
4 1.00%
5 1.20%
6 1.40%
7 1.60%
8 1.80%
9 2.00%
10 2.20%

 

Example

Sally has been really improving her knowledge and salespersonship.  She received her first LOS bonus at the end of 2020 and since then has reached the 36% commission grid-level in both 2021 and 2022.  She actually reached the 36% commission grid-level right on the money both times as well so her Service Station revenue generated for each year was $42,500.  Below is a breakdown of the LOS bonus she received at the end of both 2021 and 2022.

 

  • End of 2021:  LOS grid-level = 2   $42,500 x 0.60% (0.006) = $255.00

 

  • End of 2021:  LOS grid-level = 3   $42,500 x 0.80% (0.008) = $340.00

Powered by BetterDocs

Leave A Comment