Reward Success. Retain Talent. Build a Future Together.
When your company succeeds, your employees should share in that success. A Deferred Profit Sharing Plan (DPSP) allows employers to share profits with their team through tax-deferred contributions — a powerful way to reward loyalty, boost engagement, and build long-term commitment.
A Deferred Profit Sharing Plan (DPSP) is a registered savings plan that allows employers to share company profits with employees through tax-deferred contributions. Funds are invested and grow tax-free until withdrawal, typically at retirement or upon leaving the company.
Only employers contribute — making it a cost-effective and flexible alternative or complement to other retirement programs like Group RRSPs or Defined Contribution Pension Plans (DCPPs).
Workplace Benefits partners with Manulife, Sun Life, Canada Life, and Desjardins to provide seamless DPSP setup, administration, and employee education across Alberta, British Columbia, and Ontario.
Why DPSPs Matter
For Employees
Share directly in your company’s financial success.
Feel more valued and invested in the company’s future.
For Employers
Reward performance and loyalty with measurable incentives.
Retain top talent through vested profit-sharing contributions.
Manage costs flexibly — contributions are discretionary, not fixed.
Enjoy tax deductions for all company contributions.
A DPSP helps turn employees into true stakeholders — strengthening motivation, retention, and alignment with company goals.
Types of DPSP Structures
Every company operates differently, and so can your profit-sharing plan. Workplace Benefits helps you design a program that fits your strategy and budget:
Discretionary Contribution Plans
Contribute annually based on profits or business performance.
Fixed Contribution Plans
Set predictable employer contributions tied to salary or profits.
Integrated DPSP + Group RRSP or DCPP
Combine savings tools for a complete retirement solution.
Tiered Eligibility Models
Reward long-term employees with higher contribution rates.
We’ll ensure your plan design aligns with CRA requirements and your organizational objectives.
What’s Typically Included
A comprehensive DPSP may include:
Employer-only, tax-deductible contributions
Tax-deferred investment growth
Employee vesting schedules (e.g., 2–3 years)
Flexible contribution formulas (profit-based or fixed)
Integration with Group RRSP or DCPP programs
Access to diversified investment funds
Online reporting and account management tools
Employee financial education and communication
We make profit-sharing simple, compliant, and rewarding for everyone involved.
How Workplace Benefits Works With Employers
Our four-step process ensures your DPSP is set up properly, efficiently, and strategically:
Assess
Evaluate your company’s goals, workforce, and profitability patterns.
1
Compare
Review DPSP options from Canada’s leading carriers and providers.
2
Customize
Design a tailored plan that complements your existing benefits and retirement programs.
3
Support
Handle implementation, compliance, and employee communication.
4
As an independent employee benefits broker, Workplace Benefits provides objective advice, ongoing management, and dedicated support — so you can focus on running your business.
Why Choose Workplace Benefits
Independent Expertise
Independent access to all major Canadian carriers
Tailored Solutions
Deep expertise in group retirement and profit-sharing programs
Dedicated Support
Transparent guidance and compliance support
Cost Optimization
Seamless integration with Group RRSP and DCPP plans
National Reach
Full service across Alberta, British Columbia, and Ontario
Frequently Asked Questions
Everything you need to know about employee health benefits
Who can contribute to a DPSP?
Only employers can contribute — employees cannot make their own deposits.
Are contributions tax-deductible?
Yes, all employer contributions are deductible business expenses and grow tax-deferred for employees.
What happens if an employee leaves the company?
Employees can transfer vested DPSP funds to another registered plan, such as an RRSP or LIRA.
How are DPSPs different from profit-sharing bonuses?
Bonuses are taxed immediately, while DPSP contributions grow tax-deferred until withdrawal, offering more long-term value.
Can a DPSP replace or work alongside a Group RRSP or DCPP?
Yes — many employers use DPSPs as part of a broader retirement strategy, either standalone or combined with other plans.
Get Started with a Deferred Profit Sharing Plan
Reward your employees and align your success with theirs. Whether you’re establishing your first profit-sharing plan or enhancing your existing retirement strategy, Workplace Benefits will help you design a DPSP that motivates, retains, and builds lasting loyalty.
Workplace Benefits designs cost-effective employee benefits & retirement plans across Alberta, BC & Ontario—helping businesses protect teams, control costs, and retain top talent.
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