Professional Accounting Blog

    Accounting For Your Prosperity

    Which Organizations are Good ESOP Candidates?

    Posted by Michelle Buckley on Feb 24, 2020 1:34:24 PM

    Topics: Family Business & Succession, Benefit Plan Advising & Auditing, ESOP

    Employee stock option plans (ESOPs) are qualified retirement plans akin to 401(k) plans except that ESOPs must invest primarily in their own company’s stock. From the looks of it, ESOPs could work for just about any privately held company that expects to grow, has a strong leadership team in place and proven business success. But ESOPs have some disadvantages that prevent them from being suitable for all.

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    What Other Retirement Plans Should I Offer Alongside My ESOP?

    Posted by Michelle Buckley on Feb 3, 2020 9:40:13 AM

    Topics: Family Business & Succession, Benefit Plan Advising & Auditing, ESOP

    For ESOP companies, many believe that they cannot offer other retirement plans, however, that is not the case.  You and other privately held companies have numerous options at your disposal, many of which can work in tandem with an ESOP. 

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    Tips for Accurate ESOP Census Reporting

    Posted by Michelle Buckley on Jan 21, 2020 1:05:12 PM

    Topics: Benefit Plan Advising & Auditing, ESOP

    Compiling accurate ESOP census data is critical to the plan.  

    The underlying census data drives eligibility, vesting, and various allocations of the plan assets. We have compiled a few helpful hints to improve accuracy of the data:
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    What's the Deal with ESOPs?

    Posted by Michelle Buckley on Dec 9, 2019 5:10:45 PM

    Topics: Benefit Plan Advising & Auditing, ESOP

    ESOPs – employee stock ownership plans – grant employees with ownership interests in their companies. These benefit plans were first introduced to C corporations in the 1950s, and their tax advantages were formally written into law when the Employee Retirement Income Security Act (ERISA) passed Congress in 1974. In the 1990s, they became available to S corporations, as well. They are not universally good options for all businesses, but many organizations can benefit from them.

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    ESOP Process: Considerations for Implementing an ESOP

    Posted by Michelle Buckley on Jun 11, 2019 10:23:00 AM

    Topics: Family Business & Succession, Benefit Plan Advising & Auditing, ESOP

    At this point, you've already put some thought into implementing an ESOP and feel that it could be a viable option for you as you enter into a succession plan. When making your final decision, however, there are a few things about the ESOP process you as a business owner should be sure not to overlook.

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    Why Should I Care About ESOPs?

    Posted by Michelle Buckley on May 16, 2019 8:00:00 AM

    Topics: Benefit Plan Advising & Auditing, ESOP

    An ESOP is an employee stock ownership plan that is essentially a retirement plan which helps employees obtain ownership in the company. But why should you care? Well, ESOPs can be great options if you are a privately-held business owner considering succession planning. You have a few options available to you: 

    Family Business Succession Planning

    If you are a family-owned business, you might have your family already in place to take over the company. In this case, ESOPs are generally not the right fit. 

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    ESOPs: What Retirement Benefit Options Can Be Offered to My Employees?

    Posted by Michelle Buckley on Jan 31, 2019 8:00:00 AM

    Topics: Accounting & Auditing, ESOP

    An employee stock ownership plan (ESOP) is a type of retirement plan that helps employees obtain ownership of the company they are employed by. An ESOP can be an exit strategy for an owner of a privately held company. There are different types of retirement plan options to offer employees if you are an ESOP.

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    ESOP vs. Non-ESOP Companies: What’s the Difference?

    Posted by Michelle Buckley on Jan 3, 2019 8:00:00 AM

    Topics: Benefit Plan Advising & Auditing, Accounting and Tax Resource, ESOP

    As of 2018, the National Center for Employee Ownership (NCEO) estimates there are almost 7,000 employee stock ownership plans (ESOPs) covering more than 14 million employees.

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    Implementing an ESOP – Plan and Trustee Considerations

    Posted by Michelle Buckley on Nov 14, 2018 8:00:00 AM

    Topics: Benefit Plan Advising & Auditing, ESOP

    As a business owner, you have decided to sell to your employees and implement an employee stock ownership plan (ESOP). Your advisors have helped you structure the deal, the financing is in place, and the last piece to complete is designing the actual ESOP plan and choosing a trustee.

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    ESOPs: Are They the Right Ownership Strategy for Your Business?

    Posted by Michelle Buckley on Jul 25, 2018 11:05:35 AM

    Topics: Family Business & Succession, Benefit Plan Advising & Auditing, ESOP

    When deciding if an employee stock ownership plan (ESOP) is the right business ownership strategy for your company, there’s a few things you need to consider.

    First off, what is an ESOP? An ESOP is an employee-owner program that provides a company’s workforce with an ownership interest in the company. It must follow the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986 (IRC). An ESOP is also a qualified employee benefit plan similar to a 401(k), but it’s permitted to invest in private company stock and allowed to borrow money from it.

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