It has a lot to say when an employer is able to put said profit sharing into a deferred compensation plan such as a 401k, and when such payouts may be tax deductible by the company. That's why the company and team of tax attorneys structure and approve the rules of each plan. The most common method is a requirement of 12 months of service or a minimun number of hours worked, as explained to me by my friend who is a Tax Attorney. But maybe he pulled that out of his Ass???