If you are in our Core or Enterprise pricing tier, you can make a profit sharing contribution early in the year following the applicable plan year. Profit sharing contributions must be made before your business tax filing deadline in order to be deductible for the prior tax year.
Guideline will publish a Profit Sharing task on your Guideline administrator dashboard in the first quarter after receiving your compensation data (if applicable).
Requests will be processed based on how you are taxed and your filing deadline:
Partnerships and S-corporations: March 15 (extension September 15)
C-corporations and sole proprietorships: April 18 (extension October 16)
Tax-exempt organizations: May 15 (extension November 15)
Required information for profit sharing
If you’d like to make a profit sharing contribution, we’ll need you to provide the following:
Your reported employee compensation/owners self-employment income, if applicable
The total tax-deductible profit sharing contribution you’d like to make
Which bank account and day you’d like the amount to be withdrawn
Your profit sharing must be contributed before your tax-filing deadline. For flat dollar or pro-rata formulas, processing time is generally one day. For new comparability, processing typically takes at least two weeks.
How to determine if profit sharing is available for your plan
You can confirm whether your pricing plan includes profit sharing and what type is allowable on the Plan Settings page of your Guideline administrator dashboard.
For questions about your profit sharing election and options, please contact support, and we’ll be happy to review your plan with you.
If you are currently in our Starter pricing plan, you may be eligible to upgrade to a Core or Enterprise tier to contribute profit sharing.*
This information is general in nature and is for informational purposes only. It should not be used as a substitute for specific tax, legal and/or financial advice that considers all relevant facts and circumstances. You are advised to consult a qualified financial adviser or tax professional before relying on the information provided herein.
*Profit sharing is not available for Starter plans. Please go to our pricing page for more information on our plan tiers. See our Form ADV 2A Brochure for more information about our fees.