I pick an arbitrary dollar amount. A friend and small business owner says I give too much. I give what I think is kind. He gives a percentage of their pay.
I pick an arbitrary dollar amount. A friend and small business owner says I give too much. I give what I think is kind. He gives a percentage of their pay.
I do a combination. This year I came up with how much profit I want to distribute and put 2/3 of that fixed amount into profit sharing which gets divvied up by their earnings over the year. That’s a formula on the 401k plan I can’t alter it at will. Then the remaining 1/3 I give as cash bonus - but those tend to be the same for all employees. So in the end higher compensated employees do get more because of the higher profit sharing percentage - but the cash part makes it a little more even.