REWARD DEDICATED EMPLOYEESProfit Sharing Plans
Profit Sharing Helps Employees Participate in Your Vision
Creating a profit sharing plan allows your employees an opportunity to benefit directly from their hard work and the success of your business. Offering a profit sharing plan is the ultimate method of giving back to the people you depend on most, and a great way to attract top talent to your team. Incentives work for a reason and when your employees know they are part of the company, rather than just another face, you will be the one who really reaps the reward.
Profit Sharing Plans
There are several different types of profit sharing plans, but they share two common things: they are a great incentive to employees, and a great way for employers to show their appreciation. A company may deduct contributions up to 25% of their total annual payroll for qualified employees. Below are a few types and details of profit sharing plans we can build for you.
Age-weighted or Comparability:
This plan is based on age and compensation level allowing you to provide a greater share to older participants, those closer to retirement, or groups of employees who have a greater impact on profitability. These plans must pass government nondiscrimination testing.
Combining profit sharing with individual deferrals into a common account; allowing employees greater control over their investment for the long term.
Similar to a 401(k) setup, the Roth 401(k) option lets employees choose pretax or after-tax contributions to be added to their own after-tax salary deferral.
401(k) Safe Harbor:
This plan requires employer contributions at 3% of compensation, or a dollar-for-dollar match on employee contributions of up to 4%. These contributions are immediately vested at 100%. Particularly beneficial to high earning employees, there is no nondiscrimination testing for Safe Harbor plans.