Deferred Profit Sharing Plan (DPSP) for employees in Canada
Deferred Profit Sharing Plan (DPSP)
The DPSP is a registered plan allowing businesses to share their profits with employees. It includes tax incentives and allows companies of setting vesting periods for the employer contributions. A deferred profit sharing plan, combined with a group registered retirement savings plan (RRSP), can cost-effectively replace a defined contribution pension plan.
Advantages
- Increases the sense of belonging to the company and increases loyalty by using the vesting period
- Provides flexibility to the employer who may not contribute during years when no profit is generated by the company
- Allows personalization of each plan depending on employee preferences
- Contributions to a DPSP are non-taxable for employees
- Employer contributions are deductible and exempt from payroll taxes
OUR OTHER MODULES
- Group Registered Retirement Savings Plan (RRSP) Learn more
- Deferred Profit Sharing Plan (DPSP) Learn more
- Voluntary Retirement Savings Plan (VRSP) Learn more
- Tax Free Savings Account Learn more
- Defined Contribution Pension Plan Learn more
- Individual Pension Plan (IPP) Learn more
Included in the solution
Pension Plan
Discover also
Group Benefits
Click to rate this post!
[Total: 1 Average: 5]
You must sign in to vote