{"id":74588,"date":"2023-07-27T15:27:00","date_gmt":"2023-07-27T15:27:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=74588"},"modified":"2023-09-01T06:34:49","modified_gmt":"2023-09-01T06:34:49","slug":"what-is-profit-sharing","status":"publish","type":"post","link":"https:\/\/businessyield.com\/bs-personal-finance\/what-is-profit-sharing\/","title":{"rendered":"WHAT IS PROFIT SHARING PLAN AND HOW DOES IT WORK?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

Profit-sharing plans can be an effective instrument for boosting retirement financial stability. These retirement savings accounts, also known as a deferred profit-sharing plan (DPSP), can be extremely beneficial to both employees and employers. Profit sharing, as the name implies, is a method for businesses to distribute a portion of their profits to their employees. Continue reading to learn more about profit sharing and how it works.<\/p>

What is Profit Sharing?<\/h2>

Profit sharing is a type of pre-tax employee contribution plan in which employees receive a portion of a company’s profits. The profit-sharing payments are determined by:<\/p>