Employee profit-sharing plan (EPSP)
Share in your work’s success
Employee profit-sharing plans put a percent of your company’s profits into your hands.
Your work matters
When your company profits, you will too.
Room to grow
Contributions to an EPSP won’t take away from your RRSP contribution room.
Save for your goals
Your share and its investment earnings will be yours to use as you like.
What is an employee profit-sharing plan (EPSP)?
In an EPSP, your employer puts a percent of their profits into a savings account for you each year. You can often choose to contribute to the plan as well.
The amount you receive is calculated by a formula tied to the company’s profits that year – so, if profits are high, you’ll receive more, and vice versa.
How does it work?
- Your employer sets up a plan and chooses how much to share.
- An amount of money tied to the company’s annual profits is contributed to an individual account for you.
- You may be able to contribute money of your own and have input on how it’s invested.
Have a savings plan through your employer?
Use your online account to check your balance, make additional contributions, manage your personal information and more.
How do taxes work for an EPSP?
All of your employer’s contributions – and any investment income those contributions earn – will be part of your taxable income. In other words, you’ll be taxed as though your employer paid you a higher salary.
How can I use the money in an EPSP?
Your access to the money in your EPSP depends on the plan. Some plans let you access the money in the account immediately, while others may not until you retire. Once it’s yours, there are no restrictions on how you can use it.
If you’re not sure what your restrictions are, you can sign into your accountOpens a new website in a new window or talk to your employer about your plan’s vesting rules.