Employee Profit Sharing Distributions Using Profit First
In this concise video, Mike Michalowicz, author of Profit First, demonstrates a straightforward calculator for allocating quarterly profit distributions to owners and employees. He walks through each input field: selecting the quarter, entering the profit‑account balance (the “no‑temptation” account), and applying the default 50% distribution rule to determine the amount to be distributed. The calculator then splits that amount using a default 80% to owners (shareholders who assume risk) and 20% to employees, though these ratios are adjustable. Eligibility is limited to employees with at least one year of tenure; the employee portion is divided equally among eligible staff, producing a per‑person quarterly bonus (e.g., $100 employee pool divided between two employees yields $50 each). Mike emphasizes that these default percentages have proven effective over years of practice, wishes viewers success, and directs them to his website for additional tips.
