Profit Sharing
October 27, 2013 | | Kris Tabetando | 0 Comment
Profit sharing refers to a business sharing a percentage of its profits with its employees or owners.
An employee’s share of profits generally depends on the company’s level of profitability, the employee’s base salary, and even the amount of time the employee has spent working for the business.
Profits can be shared to employees or owners as cash payments, shares in the business, or any other form of compensation agreed to by both parties.