Originally Posted by
mike734
Is that each employee will get16% of your W2? Or do you mean 16% of profit will be distributed?
Each employee will get 16.4% of his earnings that year. It's not actually W2 because you have to remove the profit sharing amount paid from the previous year. You don't get profit sharing on the profit sharing if that makes sense.
One other thing to add. The profit sharing is pensionable so a 737 CA who made 250k last year would get 41k in profit sharing and then a additional 6150.00 deposited in his DC plan tax deferred.