Profit Sharing as Compensation

[Guest Blythe Patterson]

I want to find a plan that shows how to determine profit in a manufacturing firm. This plan needs to satisfy employees and be simple to determine amounts. If you have a formula you are currently using please e-mail me at asichuck@ismi.net.

[Guest ERead]

Not sure I understand your question fully. Are you looking for a Profit Sharing formula for a manufacturing firm, or are you asking how to determine the amount of profit generated by a manufacturing firm?

Profit should be shown on the annual returns for the firm, whether they be K-1's for partners of 1040's for individuals, or what have you, there will ultimatly be a bottom line profit amount.

As for the formula - we'd need some demographics on what you'd like to do, benefit certain classes of employees at diferent levels, or just across the board.

Looking forward to more info.