Category: ESOP

January 2, 2019
Taxation of Employee Stock Options

Before we get too deep into this, it's necessary to understand that there are two kinds of stock options, nonqualified options (NSO) and incentive stock options (ISO). With either kind of option, the employee gets the right to buy stock at a price fixed today for a defined n...

January 26, 2018
Should I Record Interest Income On My ESOP?

No.  Nothing really happened.  The company makes a contribution of $XX, which is paid the ESOP.  The ESOP turns around a pays the Company $XX for principal and interest.  The checking account did not change.  The expense the company needs to record is the actual value o...

January 26, 2018
I Went ESOP. When Should I Expect our DOL Audit?

There is a high likelihood that if you are an ESOP, then you will be visited by the DOL (Department of Labor).  This is different than an IRS audit.  The chances from my experience is 20%.  IRS audits are much lower, more like 2%....

January 25, 2018
What are SARS and Why Would an ESOP Want Them?

This question often comes up when a company goes 100% ESOP.  Prior to the ESOP transaction, ownership had a direct incentive to increase the share price. ...

January 14, 2018
Do You Need a Retirement Plan Audit?

As your company continues to grow, the number of participants in your retirement plan will likely grow as well. This can often trigger the need for an audit of your retirement plan. If your plan is approaching 120 participants, it’s time to start thinking about the audit p...