The company may choose to have their own CPA firm prepare the annual filing and perform the necessary testing, or the employer can make arrangements with the plan's CPA firm, Moss Adams LLP, to provide the services. The cost of the preparation of the Federal Form 5500 and the plan testing must be paid by the employer. A profit sharing plan is one of the most flexible plans available because contributions to the plan may be determined annually. This flexibility makes profit sharing plans attractive to employers with fluctuating annual incomes and profits. Benefits to Employers Employers can use the profit sharing plan to reward employees during periods of high earnings and reduce or suspend contributions at other times.
Contributions are tax deductible to the employer.
Profit sharing increases employee morale and loyalty. Profit sharing plan contributions may be tied to a key business goal. There are no set-up charges for employer participation in this plan and no fees for rolling over any participant balances in an existing plan to this plan. The company may choose to have their own CPA firm prepare the annual filing and perform the necessary testing, or the employer can make arrangements with the plan's CPA firm, Moss Adams LLP, to provide the services. The cost of the preparation of the Federal Form 5500 and the plan testing must be paid by the employer.