Profit Sharing Plan

A Profit Sharing Plan is an employee benefit that allows employees to receive a share of their company's profits. Typically, the company sets aside a portion of its earnings each year and distributes it to eligible employees, often based on a predetermined formula related to salary or tenure. This plan serves as an incentive for employees to contribute to the company's success, aligning their interests with the company's financial performance. It can also help attract and retain talent, providing a sense of shared achievement and financial reward beyond regular salary or wages.