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.
The contribution does not impact the amount you can put into you 401k. The profit sharing contribution is a separate amount that is based on discretionary amounts the employer wants to put in the plan for the benefit of all the fulltime employees. It is allocated based on a percentage of salary. So you are fortunate.