profit sharing


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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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As soft markets return and companies rethink their profit sharing agreements, agency principals are advised in the report to be "forewarned and forearmed .
This is the current most developed form of Profit Sharing by which the workers are allowed to buy stock shares in the company, thus "owning" a fractional part of the company and sharing in the firm's success.
As is well known, if Nash bargaining is over both wages and employment, then profit sharing leaves microeconomic employment and incomes unchanged.
Companies love profit sharing mainly because it is the darling of the top executive level that does not have an effect upon profits.
in Cleveland, Ohio, believes that significant profit sharing percentages and a dedicated workforce make his company competitive.
In the theory section, Kruse discusses the conditions under which profit sharing is expected to increase company performance.
Under the age-weighted profit sharing plan it could be $17,795 for the older and $205 for the younger, or 86 times as much, if the plan is not subject to the top-heavy rules, and 19 times as much if it is ($17,100 and $900).
Many studies have been conducted to observe the effect of profit sharing on productivity.
Reich's failure to address the role of the smallerfirms is particuarly surprising, since these firms are most often the ones on the leading edge of experimentation in employee share-ownership, gain sharing, profit sharing, and employee involvement in general--from failed People Express to stellar Apple to my favorite trio of steelmakers, Nucor, Chaparral, and Worthington Industries.
PSCA makes practical assistance available to its members with profit sharing and 401(k) plan design, administration, investment, compliance, and communication materials.
Southwest Airlines (NYSE: LUV) said it will share USD355 million through its profit sharing plan with its employees for 2014, equaling approximately 9.
Also referred to as a "Solo 401(k) Plan," the Individual 401(k) Plan is a regular 401(k) plan combined with a single-participant profit sharing plan (the name itself has been created by the marketplace, it is not found in the Code).