Simons, Gustave
October 1948
Industrial & Labor Relations Review;Oct48, Vol. 2 Issue 1, p76
Academic Journal
Profit sharing is an economic tool that deserves careful study. But while profit sharing presents many useful opportunities to achieve a more stable economy, there are many economic, legal, and tax problems which must not be overlooked. When we talk about a profit-sharing plan, what is meant is a plan to distribute the profits of an organization among its employees in cash, annually or more often. When we talk about a profit-sharing trust or a trusteed plan, what is meant is a plan to place a share of the profits of an organization in trust for the benefit of its employees. Out of this trust fund distributions are made to members after a stated period of time, at death, retirement, in the event of sickness or disability, during economic crises, or the like.


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