Federal labor law requires that a fixed percentage of a company's annual profit be shared amongst employees. The National Profit Sharing Commission establishes the percentage of profit to be shared. The amount is distributed amongst all eligible employees based on salary and number of days worked by the employee. You must distribute the employees' share in the profits within 60 days of reporting your Annual Tax Declaration (March 30th).

When it is time to calculate employee PTU earnings, the payroll administrator runs the Profit Sharing Process. This process performs the calculations to determine each employee's profit sharing income and stores the results in a batch file. Once you transfer the batch file, the earnings are included in a standard payroll run.

Before running this process, you must have specified values for the required columns in the PTU Factors fixed user table, and all eligible earnings elements must feed the appropriate balances.

See: Legal Employer: PTU Factors and Assigning PTU Eligibility to Earnings