elcheapodeluxe@alien.topBtoSmall Business•I am in Virginia and have 5 employees (including 2 owners) & haven’t offered benefits like health insurance or others beforeEnglish
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1 year agoIt varies wildly by state. The options in California were exorbitantly expensive and by comparison Oregon was quite reasonable.
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.