profit sharing

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Related to Profit sharing plan: Deferred Profit Sharing Plan
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  • noun

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a system in which employees receive a share of the net profits of the business

References in periodicals archive ?
Through the profit sharing plan, Southwest Employees currently own more than four percent of the company's outstanding shares.
To summarize, compared to defined benefit plans and other pension plans (both money purchase and target benefit), profit sharing plans offer the flexibility of not having to make annual contributions, but age-weighted profit sharing plans offer the additional advantage of providing significantly larger allocations to older employees.
The advantages of a profit sharing plan tend to provide exactly what is missing in a defined benefit plan--and vice versa--so that the two together provide an ideal balanced tax-deferred savings and retirement program.
In operation the stock bonus plan works very much like a profit sharing plan.
An important estate planning technique that allows the grantors to maintain total flexibility, thereby allowing them to change the potential beneficiaries and the dispositive provisions of the ILIT is the acquisition of survivorship life insurance in a profit sharing plan.
Under the age-weighted profit sharing plan, the allocation could be $5,673 for the older and $327 for the younger--seventeen times as much if the plan is not subject to the "top-heavy" rules, and six times as much if it is ($5,100 and $900).
An advantage of using profit sharing plan assets to purchase life insurance is that the assets used by the plan to pay the premium have not been subject to income tax as would otherwise be the case.
Sentinel provides real estate investment advisory services to 60 institutional clients, including public funds, corporate funds, Taft-Hartley pension plans, profit sharing plans and endowment funds.
Alltel and its subsidiaries support a variety of plans -- a pension plan, and several profit sharing plans.