Deferred Profit Sharing Plan (DPSP)

Many employers would like to find a more cost-effective way to contribute to their employees’ retirement savings.  The DPSP is a good choice but has traditionally been complicated to set up.  We can help your business with that.  While DPSPs often require slightly higher contributions from employers that Group RRSPs, they can offer additional benefits you cannot achieve through making contributions to a Group RRSP.

Lower Your Company’s Taxes:

Your company’s taxable earnings are calculated after you’ve made contributions to your employees’ DPSP accounts.  Any contributions you make toward your employees’ DPSPs actually reduces your company’s taxable earnings.

Lower Your Payroll Taxes:

Employer contributions to a DPSP are exempt from federal payroll taxes, including Canada Pension Plan, Employment Insurance and other applicable provincial payroll taxes.  In addition, DPSP contributions are not a taxable benefit to your employees.  This could mean additional savings.

Foster Productivity:

Profit-sharing plans give your employees a direct stake in your company’s results.  There is no better way for a company to get top performance from their employees.

Retain Employees With Vesting:

If you want to retain good employees, give them a reason to commit to your business.  Your Deferred Profit Sharing Plan can be designed with a vesting schedule that encourages long-term thinking.

Flexibility:

You decide how much and how often you will contribute.