profit sharing

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profit sharing

n.
A system by which employees receive a share of the profits of a business enterprise.

prof′it shar`ing


n.
the sharing of a portion of the profits from a business with employees, who receive it in addition to wages.
[1880–85]
prof′it-shar`ing, adj.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.profit sharing - a system in which employees receive a share of the net profits of the business
share, percentage, portion, part - assets belonging to or due to or contributed by an individual person or group; "he wanted his share in cash"
Translations
References in periodicals archive ?
Profit sharing plans must have a set formula for determining how the contributions are allocated among plan participants, but they needn't be traditional prorata plans, as illustrated in example 1.
Southwest was the first in the industry to offer a profit sharing plan, and this is the company's 40th consecutive payment.
It is permissible for a profit sharing plan to fail the non-discrimination tests for defined contribution plans, provided it actually produces nondiscriminatory benefits using the nondiscrimination tests applicable to defined benefit plans.
A profit sharing plan is particularly useful as an alternative to a qualified pension plan where the employer anticipates that there may be years in which no contribution can be made.
A 401(k) plan (or cash or deferred arrangement), is a profit sharing plan that permits employees to contribute a portion of their current compensation on a tax-deferred basis.
Y borrowed $20,000 front the X money purchase pension plan, which later merged into the X profit sharing plan.
It is possible to use the pre-tax dollars in the profit sharing plan in conjunction with an ILIT in a manner that avoids casting in stone the irrevocable provisions of the ILIT.
In contrast to pension plans, certain profit sharing plans can offer participants the opportunity to take "in-service distributions" prior to retirement (subject to a 10-percent early withdrawal tax penalty prior to age 59 1/2).
Once the plan design is agreed to, it is relatively easy for companies that already have an existing profit sharing plan to convert it to an age-weighted plan, a service-weighted plan, an owner-weighted plan or other alternative.
A qualified stock bonus plan is similar to a profit sharing plan (see page 501).
The age-weighted profit sharing plan is an intriguing new tool for the design of retirement plans, permitting employers to make contribution allocations on the basis of age as well as salary.
A new form of life insurance can be purchased in a profit sharing plan as well as in a Sec.