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.
In addition to 401(k) plans, there is another defined contribution workplace retirement plan referred to as a profit sharing plan. A company can even offer a regular 401(k) and a profit sharing plan on top of that. Like 401(k) plans, profit sharing plans are employer-sponsored retirement plans that are subject to federal laws and protections.