An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock. Employers can use ESOPs to align the interests of their employees with those of their shareholders. ESOPs boost employee satisfaction, retention, and job performance by linking your business’s financial success to employee retirement benefits; the better your business performs as a whole, the more your employees will benefit from their hard work.
Watkins Ross is 100% ESOP-owned; we understand the intricacies and unique provisions of employee stock ownership plans. Discover the specific benefits of employee stock ownership plans by exploring our ESOP articles on the Watkins Ross blog. Wondering if an ESOP can enhance your business’s retirement benefits? Connect with us here to obtain professional insight from our retirement plan team and discover whether an employee stock ownership plan is the right fit for your business.
This was my grandson’s first year of baseball. He was new to the game. I wanted him to succeed. I wanted him to love it. As an ESOP administrator, I love working with new ESOP clients. A new ESOP can be much like a child learning baseball; they must learn the basic...
There is overwhelming evidence that ESOP Companies are more productive, more profitable and more sustainable by providing locally controlled Jobs. The Pro-Private ESOP Company Tax Bill introduced in House and Senate would expand the availability of ESOPs in S...
Watkins Ross is 100% employee owned – we believe in ESOPs – we believe that ESOP laws should be continued and expanded. ESOP’s are in the law and Congress can take them away. It is important to keep advocating laws that encourage the creation and operation of...
A cross-tested plan is a type of retirement plan which favors older, long-term employees who are closer to retirement age.
2I – 2O – 2P – 2Q – 3I, Bingo! Entering incorrect information on the return or report, or leaving a field blank when there should be an entry increases the likelihood that you’ll be selected for an Employee Plans Compliance Unit compliance check. Plan characteristic...
ESOP-Owned Companies are unique through their values, integrity, teamwork and passion. Do you ooze ESOP?
Will your ESOP require a plan audit for Form 5500 this year? If so, there is much to do in the next few months! A plan audit is required if the number of ESOP Participants reported on the Form 5500 is 100 or greater, as of the beginning of the Plan Year. There...
The end of the year is a good time for S Corporations to conduct prospective anti-abuse testing under IRC 409(p) for their ESOP Plan. The anti-abuse test under IRC 409(p) is a complex ownership concentration test that must pass on every day of the plan...
The Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) changed the cash-out rule to require that account balances between $1,000 and $5,000 must be rolled over to an individual retirement account (“IRA”). This only applies if the plan sponsor makes...
The ESOP Association provides a one of a kind Press & Event Planning Kit to help members plan Employee Ownership Month (EOM) celebrations: http://www.esopassociation.org/news-landing/2014/08/07/employee-ownership-month-2014 Employee stock ownership through an ESOP...