The company told the BBC it was a symbol of appreciation "during a uniquely challenging year".
It added: "We are proud to recognise our employees with a one-time monetary gift."
In the first quarter of 2021 Microsoft's profits rose 38% on the same period last year.
The Verge reported that employees below vice-president level who joined no later than 31 March 2021 would receive the payment, including part-time workers.
The big tech firms have done well during the pandemic and Microsoft is not the only firm to have made bonus payments to staff.
In March 2020, Facebook gave employees a $1,000 (£720) bonus to help them with increased expenses caused by the pandemic, such as those associated with setting up a home office.
Google made a similar $1,000 payment in May 2020.
In December, Amazon gave front-line employees a $300 (£216) dollar bonus with part-time workers receiving $150.
Amazon's revenue rose by 38% in 2020 to $386bn (£279bn).
Apple decided to close the IOS back door used by Pegasus and others and helped to spy on journalists, social activists and to kill Jamal khashoggi
Reports indicate that Apple has patched the backdoor in its iPhone software with the latest iteration of iOS 14.