Company Affairs (CS) Interview Questions and Answers


What is deferred profit

A 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.

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