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Contribution Example Chart

 

 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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