Employee Profit Sharing

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For Business Owners & Employers

Give Your Team a Real Reason to Stay

An Employee Profit Sharing Bonus Plan is one of the most effective retention tools available to private companies — without the complexity of equity, deferred compensation, or qualified retirement plans.

Why This Plan Works

  • Fully discretionary. You decide each year whether to grant awards and how much. There's no locked-in commitment and no funding obligation. If it's a tough year, you simply don't grant awards.
  • Powerful retention mechanism. The 75% deferred balance creates a growing financial incentive for employees to stay. After a few years, the accumulated unvested balance is substantial — and forfeited entirely if they leave.
  • Not an ERISA plan. No trust, no funding, no annual filings, no nondiscrimination testing. The plan is designed as a bonus program exempt from ERISA and Section 409A under the short-term deferral rule.
  • Simpler than equity. No valuations, no cap table complexity, no dilution, no shareholder agreements. Your employees get the financial benefit of company growth without the legal and structural complications of equity or phantom equity.
  • Tax-efficient. Bonus payments are generally deductible as ordinary business expenses when paid. No special tax structures required.
  • Transparent and motivating. Employees receive clear statements throughout the year showing their awards, payments, and unvested balances. They can see exactly what they're building.
  • Works alongside existing benefits. This plan layers on top of your current compensation, 401(k), health insurance, and other benefits. It fills the retention gap that standard benefits don't address.

Interested in Offering This Plan?

We help companies implement Employee Profit Sharing Bonus Plans from start to finish — including plan documentation, employee communication templates, and ongoing administration support. Let us know how to reach you and we’ll start the conversation.

What you’ll get: A ready-to-adopt plan document, professionally designed employee statement templates (Award Notices, Payment Confirmations, and Mid-Year Updates), implementation guidance, and ongoing administration support.

Already in Use

Companies Using This Plan Today

Already in Use

Companies Using This Plan Today

Whisper Marine

Pontoon Boats & Marine

Whisper Carts

Golf Carts

Whisper UTVs

Utility Vehicles

Sunshine USA

Tanning Beds

LP Finance Group

Consumer Lending