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 ?
The non-discrimination regulations for pension and profit-sharing plans are an example of rules that have actually enhanced the ability of employers to meet business and personal objectives on a cost-effective basis.
Qualified plans will include 401Ks, 403Bs, simple IRAs, profit-sharing plans, defined-benefit plans and cash-balance plans.
There was less of a disconnect when it came to monetary motivators: Workers surveyed said annual or biannual bonuses are their most desired incentive (77 percent) when considering job offers, followed by profit-sharing plans and sign-on bonuses (tied at 49 percent).
Rubin Law will discuss special needs trusts, necessary special provisions in wills, revocable living trusts, irrevocable life insurance trusts, powers of attorney short-term guardian declarations, standby guardian declarations, and necessary changes to beneficiary designations for life insurance, IRA, 401(k), pension or profit-sharing plans. Attorneys will also discuss estate tax planning, probate avoidance, special education issues, and residential and day programs, among other topics.
Still, companies with profit-sharing plans may peg their contributions to the firm's results, so employees will learn that their successful efforts will produce tangible rewards.
* The employer deduction limit for individual allocations applicable to profit-sharing plans is $51,000 (as indexed for 2013), or $56,500 for individuals over age 50, inclusive of 401(k) catch-up deferrals; the annual deductible contribution limit is 25% of participating payroll.
Group compensation, used by about half of the firms in the sample, is measured using a "shared capitalism index" that combines the presence, worker coverage, and impact on worker earnings of Employee Stock Ownership Plans, cash profit sharing plans, gain sharing plans, Deferred Profit-Sharing Plans, and stock options granted in the past year.
"Latent Market--There are many business owners with 401(k) profit-sharing plans in place for whom the Qualified Combo Plan will be an attractive strategy.
This article focuses on the three most popular types of tax-favored retirement plans for small firms: simplified employee pension plans, commonly called "SEPs;" savings incentive match plans for employees of small employers, referred to as "SIMPLE IRAs" and "SIMPLE 401(k) plans;" and qualified profit-sharing plans.
Distributions from other forms of retirement plans--such as 401(k), 403(b) annuities, defined benefit and contribution plans, profit-sharing plans, Keoghs and employer sponsored SEPs and SIMPLE plans--are not eligible.
[] Comparability profit-sharing plans. Consider a comparability plan for clients who would like to keep the contribution discretionary and to have different contribution percentages for different categories of participants.