Employee Partnership Pay And Employer Flexibility New Models for Stimulating J

Cover Employee Partnership Pay And Employer Flexibility New Models for Stimulating J
Employee Partnership Pay And Employer Flexibility New Models for Stimulating J
Business Opportunities United States Congress House Committee On Small
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We let them vote it out and since then we have had an all cash plan. In retrospect probably a bad move on our part .
In general, profit sharing plans should be tailored to the needs of the organization. Over the years we have made minor technical changes, however, fundamentally it is the same one we began with - roughly 20% of our profit is put into a fund. We divide our payroll into it and find a percentage figure. Each member of the plan is paid that percentage of his yearly earnings from the
... fund.
Looking back, I think that the best plan would be one that is 100% deferred with participants permitted to decide each year to take a portion in cash, if so desired. The tax benefits of a deferred plan are too good to pass up for an all cash distribution but there are times in one's life when cash is preferable. Younger employees would probably take more cash to meet immediate obligations: starting a family, school, houses, cars, etc. While older employees would probably want to save as much as possible for retirement.


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