Your CEO is concerned that employees are not saving enough for their retirement.At the same,the CEO wants to have some of the company's profits shared with all employees.To address these issues,your CEO asks you,a human resource compensation specialist,to recommend the most appropriate profit-sharing plan to address this retirement issue.Which profit-sharing plan would you recommend?
A) deferred
B) combination
C) current distribution
D) cash plan

Question

Quizplus · Accepted Answer

Deferred profit-sharing plans allow employees to defer a portion of their compensation as a retirement savings plan. This can encourage employees to save more for their retirement, therefore addressing the CEO's concern. The profit-sharing component of the plan could be based on the company's overall profits, which could help fulfill the CEO's desire to share profits with employees.

Your CEO Is Concerned That Employees Are Not Saving Enough