Basic IncomeBasic Income
BonusBonus
CommissionCommission
Direct DepositDirect Deposit
Earned IncomeEarned Income
Exempt vs. Non-Exempt StatusExempt vs. Non-Exempt Status
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Gross IncomeGross Income
Gross PayGross Pay
Incentive PayIncentive Pay
Living WageLiving Wage
Merit IncreaseMerit Increase
Net IncomeNet Income
Net PayNet Pay
Pay FrequencyPay Frequency
Pay StubPay Stub
Payroll DeductionPayroll Deduction
Profit SharingProfit Sharing
Salary NegotiationSalary Negotiation
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Profit Sharing

Definition

A system where a company distributes a portion of its profits to employees, often as a bonus or incentive.

What to consider

  • Review how profit sharing is structured at your company.
  • Consider how it supplements your regular income.
  • Monitor its consistency as part of your overall compensation.

Real world scenarios

  • When the company exceeded its annual targets, employees received profit sharing bonuses, which rewarded their contributions to the business’s success.

Related terms

Direct Deposit
Gross Income
Gross Pay
Side Hustle
Incentive Pay

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