profit sharing

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Related to Profit sharing plan: Deferred Profit Sharing Plan

profit sharing,

n a mechanism for funding a retirement plan for employees or members of a professional association. Members are eligible for a percentage of the net income based on predetermined formulae. Such plans, properly executed, are legal and ethical and are to be differentiated from fee splitting, which is illegal and unethical, in which a referring professional shares in the fee-for-service income of another professional.

profit

the amount by which income exceeds expenditure.

profit sharing
profit sharing between a professional and a lay person is illegal in most countries because it is considered to be improper for a nonveterinarian to have any authority over the quality and style of the work of a professional person.
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For 2001, May associate accounts in the Profit Sharing Plan are being credited with company stock valued at 56 cents for every dollar of personal contributions up to 5% of pay.
7 million owner-only businesses currently sponsoring a traditional business retirement plan such as a defined benefit plan, profit sharing plan, money purchase pension plan, SEP, or SIMPLE-IRA plan.
95 million will be paid to settle claims for over 1,600 past and present Services Group of America employees by president Thomas Stewart, members of the company's profit sharing plan committee and Frank Russell Trust Company to settle a class-action lawsuit that accused them of failing to properly invest the plan's assets.