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:
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.
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