Question

what is a profit sharing plan

Answer 1

Profit sharing plan is a participating plan for various employees in the profits of the company after the retirement

It is a retirement plan that will give employee the share in the profits of the company.it is a plan under which the employer is considered as a participatory member in the overall profits of the company and they are motivated for working better so that they can maximize the profit and they can also have a part of the profit of the company

Under profit sharing plan, employee are to be paid with the profits which are based on the quarterly earnings.