is profit sharing taxed like a bonus 
no profit sharing is not taxed like a bonus with a cash plan employees are given either cash or stock on a regular basis such as quarterly or annually the payouts are quick relative to a retirement plan but they are also taxed as regular income a deferred plan sees profits set aside for a later date usually when the employee retires the employee is also not taxed until retirement some plans combine elements of both a cash and a deferred plan 