A profit sharing plan is an arrangement which allows employees to share in the profits of their company. Profit sharing plans are a great way to give employees a sense of ownership in a firm, which in turn gives them incentive to increase job performance and decrease excess spending. Each employee receives a percentage of profits based on the company’s earnings. The firm dictates what portion of the profit will be shared and payments may vary in accordance with salary or wages, and are in addition to regular earnings. Typically, there are restrictions with regard to withdrawing funds, especially without penalties.
Charter Trust can help in the creation and administration of your profit sharing plan, and can invest the assets in accordance with your investment policy statement. Should you not yet have an investment policy statement, we can assist in developing, drafting and implementing one for you.
