Guide
Short Term Incentive Plan Spreadsheet Template
Use this structure when HR or finance needs to calculate many short term incentive payouts consistently.
Worksheet columns
| Column | Purpose |
|---|---|
| Employee ID | Stable identifier for lookup and audit. |
| Salary | Base pay used for target bonus. |
| Target bonus % | Plan target rate. |
| Company score | Shared company multiplier. |
| Individual score | Personal score or rating factor. |
| Eligibility % | Proration or plan eligibility. |
| Cap | Maximum payout boundary. |
When spreadsheets break
Spreadsheets are fine for simple teams. They become risky when there are many exceptions, approvals, audit trails, version control issues or payroll handoff requirements.
Approval checks
✓
Lock formula cells before review.
✓
Keep an approval column with owner and timestamp.
✓
Separate input assumptions from payout output.