(Answered) Calculate a profit sharing contribution for each employee

Accounting

Calculate a Profit Sharing Contribution for each employee. The formula is 3% of compensation up to $100,000, plus 8.7% of all compensation up to $250,000. [In short, if someone earned $250,000, his or her contribution would be 3% times 100,000 plus 8.7% times 250,000]. By the end of the plan year (12/31/12), an employee must be at least age 21, have worked 1000 hours for the year, been employed for at least 1 year, and not be terminated to receive the profit sharing allocation.

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