A profit-sharing plan is a plan under which an employer allocates to amounts to a trust for employees. The payments are calculated based on income from the business.
Obligation
Trustees of a profit-sharing plan must file RL-25 slips (RL-25-T), the RL-25 summary (RL-25.S-V) and, if income was withheld at source, the Summary of Source Deductions and Employer Contributions (RLZ-1.S-V). These forms may, however, be filed by the employer rather than by the trustee.
On or before the last day of February of the year following the year covered by the summary, trustees and employers must:
As you are required to keep a copy of the slips for your files, you may photocopy or microfilm copy 1 of the slips if you transmit the RL-slip data in electronic format.
Penalty
You must file copy 1 of the RL-25 slip and the RL-25 summary, as well as send copies 2 and 3 for beneficiaries, by the prescribed deadline in order to avoid the penalty provided by law.
The penalty is $25 per day late, to a maximum of $2,500.
For further information, refer to RL-25 summary (RL-25.S-V).