Profit Sharing Definition

Employers may distribute the portion of its profits immediately that is employees may receive what amounts to a bonus or it may set up a series of accounts for employees and defer the profit sharing until employees retire.

Profit sharing definition. From the Cambridge English Corpus The remainder of the canal systems is categorized as profit-sharing contracts. Profit sharing refers to any system whereby employees receive a proportion of business profits. The amount contributed is.

The company can decide how much it will contribute from year to year or even if it will contribute at all to an employees plan. From Cambridge English Corpus The remainder of the canal systems is categorized as profit-sharing contracts. The company contributes a portion of its pre-tax profits to a pool that will be distributed among eligible employees.

In publicly traded companies these plans typically amount to allocation of shares to employees. Profit sharing is generally accepted as having many advantages providing that all employees are able to participate. Profit sharing definition is - a system or process under which employees receive a part of the profits of an industrial or commercial enterprise.

Profit sharing refers to various incentive plans introduced by businesses that provide direct or indirect payments to employees that depend on companys profitability in addition to employees regular salary and bonuses. Profit-Sharing refers to the incentive plan that provides indirect or direct payment to the workforce and is dependent on the profitability of the business entity. In a profit-sharing plan an employee receives a percentage of a companys profits either in cash or company stock based on the companys quarterly or annual earnings and the amount is determined by the employer.

Remember the goal of the profit sharing or bonus plan is to reward employees for their contributions to the overall bottom line success of the business--its not an entitlement program. A profit-sharing plan is a defined contribution pension plan in which the workers and employees are given an opportunity to obtain their share in the overall profit of the organization in such a way that they are encouraged to contribute more and more to the profit of the organization and motivates to give their best efforts thus it is an incentive plan that gives a variable benefit to the employees based on a certain percentage of profit. In profit sharing the company contributes a part of its profits into a pool of funds to be distributed among eligible employees.

Profit sharing The federal government has negotiated a variety of arrangements with its constituent units regarding royalty- and profit-sharing from the exploitation of such resources. Definition of profit-sharing noun in Oxford Advanced Learners Dictionary. A profit-sharing plan is a type of defined contribution retirement plan.