profit sharing

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Words related to profit sharing

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

References in periodicals archive ?
Participation in a profit-sharing plan typically must be offered to all employees age 21 or older who worked at least 1,000 hours in a previous year.
Cross-testing provisions allow third-party administrators to calculate the contributions being made to a profit-sharing plan on a benefits basis so they can be compared to any benefits being provided under a defined benefit plan.
When he revamped the profit-sharing plan, Brubacher also worked with his staff to come up with a shared vision, mission, and set of core values for the company.
This also allows the participant to take advantage of IRS rulings that allow profit-sharing plan participants to use "aged money" without limit to acquire life insurance.
Going forward, one profit-sharing plan may be used with all contributions discretionary.
A profit-sharing plan is a popular compensation system aimed at stimulating the work force to top-flight effort on behalf of the company.
For example, when employees used ESOP financing to acquire Avis in 1986, they maintained the same level of pay and benefits they had before the acquisition, including a 3-percent-of-pay 401 (k) profit-sharing plan.
Until 1986, companies were forbidden from making contributions to their profit-sharing plan in years when they had no taxable income, but the requirement of even this limited relationship between profits and profit-sharing was removed by the 1986 tax act.
Other features may also affect the incentives a profit-sharing plan offers.
Baldor began its profit-sharing plan 51 years ago as a way to share the company's financial success with its employees.
A client's existing or newly created defined contribution profit-sharing plan may be an ideal source of premium dollars for clients who need to fund a buy-sell arrangement but are hesitant to do so out of personal income or business cash flow.
For example, Corporation 1 established a profit-sharing plan in 1984.
The company's success will also be enjoyed by its Sudbury workers, who earlier this year negotiated a new profit-sharing plan as part of a three-year collective agreement.