With the rapid development of intellectual economy,year-end reward as an incentive mechanism in contemporary enterprises,is more and more specific in character and accords with the demands of market.

The reasons of the failure of year-end bonus are discussed on four aspects: the operation,the expectation of staff,the support of leadership,and the situation of evaluation.

The change in the method of levying an individual’s income tax is based on the yearly lump-sum bonus,which has a direct effect on the way of granting the yearly lump-sum bonus.