Deferred Profit-sharing
Definition of "Deferred profit-sharing"
Portion of company profits allocated by an employer, in good years, to an employee's trust. Contributions on behalf of each employee are expressed as a percentage of salary with 5% being common practice. If the profit sharing plan is a qualified plan according to the IRS, employer contributions are tax deductible as a business expense. These contributions are not currently taxable to the employee; benefits are taxed at the time of distribution.
Popular Insurance Terms
Failure to act with the legally required degree of care for others, resulting in harm to them. ...
When people think of home insurance policies, they usually only think about the obvious coverage of its house structure. But that, known as Dwelling Insurance, is only one of the coverage ...
Federal agency that researches injury and illness arising from workplace hazards and recommends standards for maximum exposures to hazardous substances. ...
Coverage for risks deemed uninsurable at standard rates by normal standards (persons whose medical histories include serious illness such as heart disease or whose physical conditions are ...
Document used to sign up employees for plans such as salary savings, life insurance, or other employee benefits. ...
Period of time during which notice of claim and proof of loss must be submitted by the insured or his or her legal representatives. ...
Plan that combines the simplicity and flexibility of the traditional profit-sharing plan with the best features of the defined benefit plan and the target benefit plan. By age-weighing the ...
Change in years of service credited to employee in calculating pension benefits and other employee benefits. ...
Termination of premium payments by an employer on behalf of an employee to an employee benefit plan. ...
Have a question or comment?
We're here to help.