If filing your small business taxes yourself becomes too complicated or confusing, it's advisable to consult with a professional the first time so you'll understand all of the steps and documentation needed. Step 1. Gather each tax form you need to fill out for the type of business you own.
Definition of profit sharing. : a system or process under which employees receive a part of the profits of an industrial or commercial enterprise.
Unlike a Pension plan, profit sharing plan contributions are not mandatory, but must be substantial and recurring. Profit sharing could account for the increase in the value of your 401(k). Investment performance could also account for the increase...or it could be a combination of both. Profit sharing plans are a type of retirement plan. In a profit sharing plan, your employer contributes some of his/her money towards your retirement. Often times, profit sharing plans are linked with 401(k) plans.