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.
A profit sharing plan is a defined contribution plan in which the employer is granted responsibility for determining when and how much the company contributes to the plan. The amount allocated is usually based on the employeeâs salary level or level within the organization. Unlike a 401(k) plan, a profit sharing plan does not allow employees to make contributions. The plan only accepts contributions from the employer. Companies aren't required to contribute a set amount; instead, the amount is based on their discretion.