Employee savings offer employees the possibility of building up capital while benefiting from attractive tax treatment. Several forms are possible for this type of savings, whether profit-sharing, participation or even employee savings plans. For the employee, this is an effective and easy way to put money aside, but there are disadvantages in setting up this system. What are the disadvantages of business savings?
Employee savings is a guarantee, for the employee, of being able to invest money intelligently. The sums offered can thus be paid directly or be deposited in employee savings vehicles. For example, profit-sharing offers the employees concerned a bonus proportional to the results or performance of the company. All companies can have a profit-sharing plan. It is important to know that this type of premium is subject to social contributions, as well as income tax.
Other types of employee savings plan also exist with, for example, participation, which provides for the redistribution of part of the profits earned through the work of an employee. The PEE or the PER are also possibilities, which apply and can receive voluntary payments from the employee or the company. The sums saved are normally blocked until the date of retirement. Discover, in our slideshow, what are the main disadvantages of saving in business.
