What Is Profit Sharing Pros and Cons

Profit sharing helps employees prepare for retirement by offering them a portion of the company’s profits. Who wouldn’t want that? While it does offer both employees and employers definite advantages, profit sharing also comes with some less obvious drawbacks.   Key Takeaways: Profit Sharing Profit sharing is a workplace compensation benefit that helps employees save for retirement by paying them a portion of the company’s profits if any.In profit sharing, the company contributes a part of its profits into a pool of funds to be distributed among eligible employees.Profit sharing plans may be offered in lieu of or in addition to traditional retirement benefits, like a 401(k) plan. Profit Sharing Definition â€Å"Profit sharing† refers to variable pay workplace compensation systems under which employees receive a percentage of the company’s profits in addition to their regular salary, bonuses, and benefits. In an effort to help its employees save for retirement, the company contributes a part of its profits into a pool of funds to be distributed among employees. Profit sharing plans may be offered in lieu of or in addition to traditional retirement benefits, and the company is free to make contributions even if it fails to make a profit.   What Is a Profit Sharing Plan? Company-funded profit sharing retirement plans differ from employee-funded profit sharing plans like 401(k) plans, in which participating employees make their own contributions. However, the company may combine a profit sharing plan with a 401(k) plan as a part of its overall retirement benefits package.   Under company-funded profit sharing plans, the company decides from year to year how much—if anything—it contributes to its employees. However, the company has to prove that its profit sharing plan does not unfairly favor its highest-paid employees or officers. The company’s profit sharing contributions may be made in the form of cash or stocks and bonds.   How Profit Sharing Plans Work Most companies make their profit sharing contributions to qualified tax-deferred retirement accounts. Employees can begin taking penalty-free distributions from these accounts after age 59 1/2. If taken before age 59 1/2, distributions may be subject to a 10% penalty. Employees who leave the company are free to move their profit-sharing funds into a Rollover IRA. In addition, employees may be able to borrow money from the profit sharing pool as long as they are employed by the company.   How Individual Contributions Are Determined Many companies determine how much they will contribute to each employee’s profit sharing plan using the â€Å"comp-to-comp† or â€Å"pro-rata† method, which allocates a share of the profit based on the employee’s relative salaries.   Each employee’s allocation is calculated by dividing the employee’s compensation by the company’s total compensation. The resulting fraction is then multiplied by the percentage of profit the company has decided to contribute to profit sharing to determine each employee’s share of the total company contribution. For example, a company with total annual compensation of $200,000 to all of its plan-eligible employees decides to contribute $10,000—or 5.0%—of its net profit to the profit sharing plan. In this case, the contribution to three different employees might look like this: Employee Salary Calculation Contribution (%) A $50,000 $50,000*($10,000 / $200,000) = $2,500 (5.0%) B $80,000 $80,000*($10,000 / $200,000) = $4,000 (5.0%) C $150,000 $150,000*($10,000 / $200,000) = $7,500 (5.0%) Under current U.S. tax laws, there is a maximum amount a company can contribute to each employee’s profit sharing account. This amount changes depending on the inflation rate. For example, in 2019, the law allowed for a maximum contribution of the lesser of 25% of the employee’s total compensation or $56,000, with a limit of $280,000. Distributions from profit sharing plans are taxed as ordinary income and must be reported as such on the employee’s tax return.   The Pros of Profit Sharing   Besides helping employees build toward a comfortable retirement, profit sharing makes them feel that they are working as part of a team helping the company achieve its goals. The assurance that they will be rewarded above and beyond their base salaries for helping the company prosper motivates employees to perform above and beyond minimal expectations.   For example, in a company that only pays its salespersons commissions based on their individual sales, such a team spirit rarely exists, as each employee acts in his or her own best interest. However, when a portion the total commissions earned is shared among all of the salespersons, the more likely they are to function as a cohesive team. The offer of profit sharing can also be a valuable tool in helping companies recruit and keep talented, enthusiastic employees. In addition, the fact that company contributions are contingent on the existence of a profit, profit sharing is generally less risky than outright bonuses. The Cons of Profit Sharing Some of the main strengths of profit sharing actually contribute to its potential weaknesses. While employees benefit from their profit sharing money, the assurance of its payment can make them appreciate less as a motivational tool and more as an annual entitlement. Since they receive their profit sharing contribution regardless of their job performance, individual employees see little need to improve.   Unlike director-level employees who make decisions that can directly affect revenue, lower-level, and front line employees tend to be less aware of how their daily interactions with customers and the public can help—or harm—the company’s profitability. Sources Streissguth, Tom. Do I Claim Profit Sharing Payouts as Income on Federal Taxes? The Nest.Profit Sharing Plans for Small Businesses. US Department of Labor.Kenton, Will (2018). Deferred Profit Sharing Plan (DPSP). Investopedia  Finch, Carol (2017). Profit-Sharing Pros and Cons. BizFluent

William Hazlitt on Style - Classic British Essays

A master of invective and irony, essayist William Hazlitt was one of the great prose stylists of the 19th century. In On Familiar Style (originally published in the London Magazine and reprinted in Table Talk, 1822), Hazlitt explains his preference for plain words and popular modes of construction. On Familiar Style (excerpts) by William Hazlitt (1778-1830) It is not easy to write a familiar style. Many people mistake a familiar for a vulgar style, and suppose that to write without affectation is to write at random. On the contrary, there is nothing that requires more precision, and, if I may so say, purity of expression, than the style I am speaking of. It utterly rejects not only all unmeaning pomp, but all low, cant phrases, and loose, unconnected, slipshod allusions. It is not to take the first word that offers, but the best word in common use; it is not to throw words together in any combinations we please, but to follow and avail ourselves of the true idiom of the language. To write a genuine familiar or truly English style, is to write as any one would speak in common conversation who had a thorough command and choice of words, or who could discourse with ease, force, and perspicuity, setting aside all pedantic and oratorical flourishes. Or, to give another illustration, to write naturally is the same thing in regard to common co nversation as to read naturally is in regard to common speech. . . It is easy to affect a pompous style, to use a word twice as big as the thing you want to express: it is not so easy to pitch upon the very word that exactly fits it. Out of eight or ten words equally common, equally intelligible, with nearly equal pretensions, it is a matter of some nicety and discrimination to pick out the very one, the preferableness of which is scarcely perceptible, but decisive. . . . The proper force of words lies not in the words themselves, but in their application. A word may be a fine-sounding word, of an unusual length, and very imposing from its learning and novelty, and yet in the connection in which it is introduced may be quite pointless and irrelevant. It is not pomp or pretension, but the adaptation of the expression to the idea, that clinches a writers meaning:--as it is not the size or glossiness of the materials, but their being fitted each to its place, that gives strength to the arch; or as the pegs and nails are as necessary to the support of the building as the larger timber, and more so than the mere showy, unsubstantial ornaments. I hate anything that occupies more space than it is worth. I hate to see a load of band-boxes go along the street, and I hate to see a parcel of big words without anything in them. A person who does not deliberately dispose of all his thoughts alike in cumbrous draperies and flimsy disguises, may strike out twenty va rieties of familiar every-day language, each coming somewhat nearer to the feeling he wants to convey, and at last not hit upon that particular and only one which may be said to be identical with the exact impression in his mind. . . . It is as easy to write a gaudy style without ideas, as it is to spread a pallet of showy colours, or to smear in a flaunting transparency. What do you read,--Words, words, words.--What is the matter?--Nothing, it might be answered. The florid style is the reverse of the familiar. The last is employed as an unvarnished medium to convey ideas; the first is resorted to as a spangled veil to conceal the want of them. When there is nothing to be set down but words, it costs little to have them fine. Look through the dictionary and cull out a florilegium, rival the tulippomania. Rouge high enough, and never mind the natural complexion. The vulgar, who are not in the secret, will admire the look of preternatural health and vigour; and the fashionable, who regard only appearances, will be delighted with the imposition. Keep to your sounding generalities, your tinkling phrases, and all will be well. Swell out an unmeaning truism to a perfect tympany of style. A thought, a distinction is the r ock on which all this brittle cargo of verbiage splits at once. Such writers have merely verbal imaginations, that retain nothing but words. Or their puny thoughts have dragon-wings, all green and gold. They soar far above the vulgar failing of the Sermo humi obrepens--their most ordinary speech is never short of an hyperbole, splendid, imposing, vague, incomprehensible, magniloquent, a cento of sounding common-places. If some of us, whose ambition is more lowly, pry a little too narrowly into nooks and corners to pick up a number of unconsidered trifles, they never once direct their eyes or lift their hands to seize on any but the most gorgeous, tarnished, thread-bare, patchwork set of phrases, the left-off finery of poetic extravagance, transmitted down through successive generations of barren pretenders . . .. (1822) The full text of On Familiar Style appears in Selected Writings, by William Hazlitt (Oxford University Press, 1999). Also by William Hazlitt: On the Feeling of Immortality in YouthOn Going a Journey

Cognitive Psychology Essay - 1294 Words

Evolution of Cognitive Psychology Plynia Welty Psych 560 June 11, 2012 Brian Uldall Evolution of Cognitive Psychology Cognitive psychology embarked on a revolutionary journey since the era of Saint Thomas Aquinas (Dr. King, 2012). St. Aquinas was the pioneering mind behind the idea that behavior can be divided into two areas, cognitive and effect. Logging empirical research on a subject provides practitioners a comprehensive view of the subject matter (Dr. King, 2012). In relation to cognitive psychology, one must first have a definition of cognition. The next line of thinking would be to have a working knowledge if interdisciplinary perspective as related to cognitive psychology and a description of the appearance of†¦show more content†¦The cognitive processes begin at age zero and continue until life ceases. However, the cognitive process will vary from person to person depending on his or her social situation in life and the amount of intellectual stimulus dedicated to the individual. Interdisciplinary Perspective as Related to Cognitive Psychology In order to understand the interdisciplinary perspective in relation to cognitive psychology it is necessary to understand the discipline itself and its attractiveness. History shows that cognitive psychology was originally considered experimental psychology (McLeod, 2007). The term cognitive psychology came into use around 1967 with the publication of a book titled Cognitive Psychology by Ulric Neisser (McLeod, 2007). The Cognitive Science Society officially began in the late 1970s. Psychology was not considered a main player. The core group was formed from three main disciplines, artificial intelligence, psychology, and linguistics. While philosophy, neuroscience and anthropology played smaller roles (Gentner, 2010). Since cognitive psychologusts play a dominant role in the field of psychology, a large amount of practitioners consider themselves cognitive psychologists. Many sub disciplines contain cognition and is ba sed on the root of psychology. Cognitive psychology is the center focus within the interdisciplinary field study termed cognitive scienceShow MoreRelatedCognitive psychology  . Essay5542 Words   |  23 PagesCognitive psychology  is the study of  mental processes. The  American Psychological Association  defines cognitive psychology as The study of higher mental processes such as  attention, language use,  memory,  perception, problem solving, and  thinking.[1]  Much of the work derived from cognitive psychology has been integrated into various other modern disciplines of psychological study including  social psychology,  personality psychology,  abnormal psychology,  developmental psychology, and  educational psychologyRead MorePsychology : Cognitive Psychology And Psychology1154 Words   |  5 Pagescome are explained by Cognitive psychology. With these necessary functions, you may wonder, just what is cognitive Psychology? Cognitive psychology is a branch of psychology that covers the mental processes of how people receive, retain and grasp information and situations. The term â€Å"cognition† stems from the Latin word â€Å" cognoscere† or to know. Basically, cognitive psychology studies how people acquire and apply knowledge or information. 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It is also known that cognitive psychology was out numbered by behaviorism but later revived, bringing into being cognitive revolution. The paper discusses cognitive revolution in the history of cognitive psychology as the most influential part in the practice of modern psychology. Introduction A scientific branch of psychology that isRead MoreCognitive Psychology : Psychology And Psychology Essay1165 Words   |  5 PagesCognitive Psychology Smith (2001) defines psychology as the study of the mind. One major subset within the broad study of psychology is popularly known as cognitive psychology. According to Aukrust (2011), cognitive psychology is a branch of psychology that deals with the study of mental processes which includes how people or individuals think, perceive, learn and remember. As a part of the larger cognitive science field, this psychology branch is by means related to other disciplines such as neuroscienceRead MoreCognitive Psychology863 Words   |  4 PagesCognitive Psychology Brian Shrum Psy/360 April 11, 2013 Dr. Turner Cognitive Psychology Hermann Ebbinghaus said, â€Å"Psychology has a long past, yet its real history is short† (Goodwin, 2008, p. 28). He was referring to the belief that while the study of human thought, emotion, and behavior is firmly entrenched in philosophy, psychology as its own discipline has only been around a short time. During this short time, different branches of psychology have come out, one of them is cognitive psychologyRead MoreCognitive Psychology And Human Behavior930 Words   |  4 PagesCognitive psychology has evolved over the years. Researchers are constantly trying to find new ways to understand and define the human brain. Our memory is quite important in how we function on a day-to-day basis. Our memories help us to remember important functions such as combing our hair, brushing our teeth or getting dressed in the morning. Memories also help us to learn more information. Cognitive psychology refers to the study of human mental processes and their role of thinking, feeling , andRead MoreDifference Between Cognitive And Cognitive Psychology1389 Words   |  6 Pagestwo different approaches to Cognitive Psychology This essay will be focused on two different approaches to cognitive psychology: Cognitive Neuropsychology and Cognitive Neuroscience. Cognitive Neuropsychology is concerned with the patterns of cognitive performance and emphasis on the cognitive effects of brain-damaged patients who suffered lesions, injuries or diseases, providing vest information on normal human cognition. (Eysenck and Keane 2015, p.5) Whereas cognitive neuroscience involves in-depthRead MoreAntecedents of Cognitive Psychology1680 Words   |  7 PagesCognitive Psychology Definition and Subject Matter â€Å"Cognitive psychology is a modern approach to the study of [processes by which people come to understand the world- such processes as memory, learning, comprehending language, problem solving, and creativity. Cognitive psychology has been influenced by developments in language, computer science, and of course, earlier work in philosophy and psychology† – Hayes (cited by Lundin) This definition of Hayes emphasizes the notion that cognitiveRead More Cognitive Psychology Essay1753 Words   |  8 PagesCognitive Psychology Psychology is defined as the study of mind, emotion and behaviour. One major perspective within psychology is known as cognitive psychology, which is primarily concerned with the explanation of thought processes through the development of theoretical mental systems. 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Theories in Second Language Acquisition by James P....

Introduction Acquiring second language has its impact on the social and cultural knowledge. One of the theories that concern with that knowledge is the sociocultural theory that was originated by the Russian psychologist L. S. Vygotsky. The theory explains how individual mental functioning is related to cultural, institutional, and historical context. SCT has three main areas. These are: interaction, ZPD, and scaffolding. Summary In chapter (11) of James P. Lantolf and Steven L. Thorne’s book â€Å"Theories in second language acquisition† they expounded sociocultural theory in depth. It starts with a brief introduction about the theory then some detailed information. SCT focuses on how language(s) learned through mediated process on human†¦show more content†¦Private speech regulates second language learners, and in social communication this speech become meaningful through mental activity mediation. Another core concept of SCT is internalization, which is the relationship of the individual social environment and the actual performs in future activities. The key to internalization for Vygotsky resides in imitation, which does not just refer to physical behavior but also includes symbolic mediation. It relies on our ability to understand the intentional acts. It also has an important part in acquiring the language. Response As an English student who is yet in the process of learning about language acquisition, I found Lantolf and Thorne writing is hard to perceive. It needs a pre-understanding of the topic and its aspects, and a deep look into it to attain a great reading and compose a proper response paper. Firstly when I saw the article I saw a block of words. They were overlapped, which makes the reader-like my self- less interested in reading. After I read it thoroughly. It starts to make sense, but the information that I have about the topic from what I had been learning in the class was quite different. It is more complicated and profound, and the written examples were more misleading. Also I found some points that are not important which could be the reason why I felt bored. Finally, my response to Lantolf and Thorne article is not negative at all but I think my level of understanding is not completed and not as

Warrior Leader Course Pa Free Essays

December 2008 MEMORANDUM FOR RECORD SUBJECT: Warrior Leader Course Welcome Letter 1. Congratulations on your selection to attend the Warrior Leader Course at the 3rd BN, 166TH Regiment at Fort Indiantown Gap, Pennsylvania. You will report between the hours of 0800 and 2200 on the ATRRS report date. We will write a custom essay sample on Warrior Leader Course Pa or any similar topic only for you Order Now 2. Effective 10 August 2006 soldiers attending WLC are still required to meet the APFT and HT/WT requirements. However, soldiers who meet academic course requirements, but fail the APFT or HT/WT standards, will be considered a course graduate under the category of marginally achieved course standards. 3. Soldiers that have returned from OIF/OEF within 90 days of reporting to WLC are required to take the APFT. However, prior to the test you will have the option to have the PT test count towards your academic average or not. Soldiers in this category need either their DD 214 or a memorandum from their commander stating that they returned from deployment with in the last 90 days. . Physical requirements for this course are very demanding. Students must be able to pass the APFT, meet HT/WT standards, carry a 50 pound combat load, low crawl, high crawl, rush for three to five seconds, walk a minimum of 2 miles with combat load and negotiate rough terrain under varying climatic conditions. 5. Soldiers who have a permanent profile designator â€Å"3† or â€Å"4† must include a copy of their DA Form 3349 and the results of their military medical review board (MMRB) as part of their course application. Soldiers who have met the previous criteria may attend WLC and train within the limits of their permanent profile, provided they can otherwise meet course prerequisites and graduation requirements. Soldiers with temporary profiles, with the exception of shaving or nonperformance deterring profiles who have participated in OIF/ OEF can attend WLC provided they have a copy of their current profile and memorandum bearing the commanders signature stating that the temporary profile exists as a result of injuries during participation in OIF/ OEF. How to cite Warrior Leader Course Pa, Papers

Founding Brothers free essay sample

Adams difficulties throughout becoming the second president, and discusses Adams and Jefferson different views about the Revolution during the end of their lives. He focuses mainly on those six events so the reader knows what really may have happened Instead of what we learn Is the truth. It gives a different perspective of history overall and makes them question things that they normally wouldnt. Joseph J. Wrote this book and chose these specific people because although they shared different thoughts and opinions, the seven founding brothers collaborated when hey needed to by accepting each others ideas.They werent perfect and had flaws, but they knew importance of the choices they needed to make, even when they disagreed on thing. Most importantly they were intelligent and knew what they needed to do to get things done. Each moment was crucial to the way that America is today. Argument is that the American Revolution was the most important event in history. He Impacted the government tremendously with his way of thinking and his attitude toward the need for national unity.He talked about independence from foreign nations; he devoted several paragraphs to this in his in his address. Washington always made the well- being of the country first. For example, when Continental Congress wanted help the French with an invasion of Canada, Washington opposed. He feared that that putting the France In possession of that capital that they would become greedy, and doubted that they would withdraw once they were ensconced In Canada. I think that he may have felt that also, America was young and soul growing as a country. He was criticized for this decision.In closing on Washingtons legacy, I feel that there were many reasons why he retired. In short, he was Just getting old and probably couldnt sake the political pressure. He was also going through a physical decline. Washington intended for his farewell address to be advice to his countrymen. He wanted them to sustain without, and without a king. Adams and Jefferson were Indeed friends but had different agendas on how the country should be run. Their relationship was unique; they were great friends but even better competitors. The presidency drove them apart.Adams was a federalist, and Jefferson was a democratic republican so to speak. Through the Continental congress and diplomatic missions they became close friends. As they worked more together Adams developed more respect Jefferson, although he was less effusive. The low point of their relationship was definitely after the election In 1800. After this their relationship became more antagonistic. As did not speak for a long 12 years. Adams felt that Jefferson had betrayed their friendship. After the death of Jefferson daughter, Abigail Adams began to exchange letters of condolences.Jefferson confused it as an invitation to reconcile with Adams family. The two disputed briefly, John didnt find out until several months later. Finally n January of 1812, Adams sent a letter from Quince to Monticello. Why then, did Adams take the fateful step, which led to a fourteen year exchange of 1 58 letters, a correspondence that is generally regarded as the intellectual capstone to the revolutionary generation and the most impressive correspondence between prominent states in all of American history (Ellis 223)?For the last 15 years of their lives they contacted each other through letters and rebuilt their friendship. On the 50th Anniversary of the signing of the Declaration of the Independence, both Thomas Jefferson and John Adams died within hours of each other. They will never be forgotten for the inevitable and timely contributions to our young country. In the introduction Ellis describes the American Revolution perfectly with the statement No event in American history which was so improbable at the time has seemed as inevitable in retrospect as the American Revolution.Americas victory seemed beyond improbable se eing as how England had the greatest army of the Revolutionary era. The young colonists chose to seek out alliances with the French, Dutch, and Spanish due to their lack of monetary resources, experience or even the pure man power. British beforehand, even tried attacking the colonists politically which had their in leading to an inevitable rebellion. They initiated taxes, and other events such as the Boston Massacre took place that ignited the young colonists to take stand against Great Britain.Though faith, inspiration and prosperity the Americans shocked the world, defeated the odds and took the victory in 1783, securing their new independent world. This victory inspired countries worldwide to rebel against the tyrannical empires that were controlling them. This victory is evident in todays society as America thrives as country that influences others and till is, independent. Founding Brothers truly exposes a much more personal point of view of our founding fathers and their irrefutable destiny.Joseph Ellis targets critical elements of their and what they thought was best for the young country of America. They molded something bigger than themselves during this revolutionary era. The author really brings to life the intricate detail of Washingtons legacy and the partnership between two great leaders Thomas Jefferson and John Adams. Joseph Ellis statement was more than valid; it Justifies American in a few short words.