Deferred Profit Sharing Plans (DPSPs)

Deferred Profit Sharing Plans allow employees to participate in the profits of the company. DPSPs provide a direct link between the employee’s daily work and the profitability of the company. This is a great way to encourage employees to take ownership in their work.

Unlike other employer-sponsored savings programs (ie. RRSPs or Pensions), the DPSP does not allow for employee contributions. The contributions are strictly from company profits. There are various ways to structure the plan. Typically a percentage of the profits are paid out to each employee but it can also be arranged as a flat dollar amount per employee.