SCS Administration (ESOP)

Employee Benifits ESOP

ESOP Administration

There have been ESOP legislation changes and additions from every major tax bill since ESOPs became part of the law in 1974. Because of these frequent amendments to the law, it is necessary for a company to choose an ESOP administrator that is absorbed in ESOP issues to insure that their company's ESOP continually complies with IRS regulations.

SCS Administration's specialty since 1986 has been one plan - the ESOP. Throughout that time our professionals have assisted and educated companies to follow and benefit fully from the ongoing changes in laws affecting their ESOP. Our administration, through reports, statements and forms, provide the company and participants with clear and timely information that illustrates and explains the ESOP benefits that are received yearly.

Along with our ESOP experience, our administration staff has experience and training in administrating other qualified plans for the main purpose of making sure that a company's ESOP works in harmony with a company's other qualified plans (i.e., 401(k), profit sharing, money purchase plan, etc). Often times SCS Administration's administration staff does the final compliance tests combining all of a company's plans to insure that each plan, separately and together, conform to the IRS requirements.

The following lists the ESOP annual administration services we provide:

ESOP Administration
  • Allocation of contributions, forfeitures, earnings from investments, company stock appreciation (including original cost basis of shares tracked) for each participant.

  • Participation Statements in certificate form for each participant clearly showing the contributions, forfeitures, transactions, earnings, distributions, vesting, etc. that affect each participant's account.

  • A comprehensive Plan Participant Report that summarizes the Participation Statements as well as birth, hire, termination & forfeiture dates.

  • Upon a vested Participants completion of services with the Company, SCS prepares Participant Distribution Forms to be completed by the terminated participant or his or her beneficiary.

  • Each non-discrimination coverage test required by the IRS is conducted and reported to the Company.

  • IRS Form Series 5500 and required schedules are completed.

  • Each Participant receives an IRS required Summary Annual Report of the Form Series 5500.

  • All Participants receive ESOP Beneficiary Forms.

  • All administration forms, statements and reports can be customized to meet the requests and objectives of a company.

If you have any questions concerning our ESOP Administration Services and would like to speak to an administrator, or if you would like to receive a sample package of ESOP Participation Statements, forms and reports, please call us at 858-272-8973, or e-mail us at  

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