These are the profit-sharing payments.
Profit sharing schemes give employers design flexibility as well as contribution discretion. Employer contributions are voluntary and can be allocated in a variety of ways. No payment is required if an employer produces little or no profit during the fiscal year, however contributions are permissible even if the company is not profitable. The maximum deduction allowed by an employer is 25% of the annual remuneration provided to qualifying employees. Individual maximum contribution limits for employees in all defined contribution plans are 100% of pay or $53,000, whichever is less, in 2016.
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