Profit Sharing Allocation Comparison
Employee |
Age |
Compensation |
Traditional |
Integrated |
Age- Weighted |
New Comparability |
Owner 1 |
56 |
$265,000 |
$53,000 (20%) |
$53,000 (20%) |
$53,000 (20%) |
$53,000 (20%) |
Owner 2 |
49 |
$200,000 |
$40,000 (20%) |
$38,343 (19.2%) |
$44,663 (22%) |
$53,000 (27%) |
Owner 3 |
60 |
$100,000 |
$20,000 (20%) |
$16,849 (16.9%) |
$53,000 (53%) |
$53,000 (53%) |
Employee1 |
59 |
$90,000 |
$18,000 (20%) |
$15,164 (16.9%) |
$45,412 (51%) |
$4,500 (5%) |
Employee 2 |
29 |
$50,000 |
$10,000 (20%) |
$8,424 (16.9%) |
$2,183 (4%) |
$2,500 (5%) |
Employee 3 |
47 |
$40,000 |
$8,000 (20%) |
$6,740 (16.9%) |
$7,583 (19%) |
$2,000 (5%) |
Employee 4 |
32 |
$30,000 |
$6,000 (20%) |
$5,055 (16.9%) |
$1,673 (6%) |
$1,500 (5%) |
Employee 5 |
27 |
$25,000 |
$5,000 (20%) |
$4,212 (16.9%) |
$927 (4%) |
$1,250 (5%) |
Employee 6 |
26 |
$25,000 |
$5,000 (20%) |
$4,212 (16.9%) |
$854 (3%) |
$1,250 (5%) |
Employee 7 |
23 |
$25,000 |
$5,000 (20%) |
$4,212 (16.9%) |
$669 (3%) |
$1,250 (5%) |
Employee 8 |
69 |
$20,000 |
$4,000 (20%) |
$3,370 (16.9%) |
$9,872 (49%) |
$1,000 (5%) |
Employee 9 |
60 |
$20,000 |
$4,000 (20%) |
$3,370 (16.9%) |
$10,949 (55%) |
$1,000 (5%) |
Employee 10 |
32 |
$20,000 |
$4,000 (20%) |
$3,370 (16.9%) |
$1,115 (6%) |
$1,000 (5%) |
Employee 11 |
35 |
$20,000 |
$4,000 (20%) |
$3,370 (16.9%) |
$630 (3%) |
$1,000 (5%) |
Total |
|
$930,000 |
$186,000 |
$169,691 |
$232,530 |
$177,250 |
Owner Percentage |
|
|
61% |
64% |
65% |
90% |
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