Speaking of Benefits

When coverage testing gets tricky, the real issue is still the same: who your plan is actually covering—and whether enough non-highly compensated employees are benefiting. In this episode, we'll talk about what happens after a ratio test failure, how the average benefit test can be the save, why benefit value matters more than headcount in real-world planning, and what sponsors often miss with agg...

This episode is about a question every sponsor runs into sooner or later: who has to be covered by your retirement plan for it to stay compliant. We'll use the ratio percentage test to explain what it's measuring, how eligibility rules move the result, what to look at first when testing starts failing, when coverage testing can be avoided, and why excluding a small number of HCEs can sometimes imp...

Many employers assume retirement plans have to treat everyone the same, but the coverage rules don't work that way. Today we'll lay the foundation: how coverage rules and nondiscrimination rules fit together, why the HCE/NHCE distinction drives testing outcomes, what it means for an employee to "benefit," and how exclusions can quietly create compliance trouble even in well-intentioned plan design...

If you've discovered you missed one, or several, Form 5500 filings, the fear is usually penalties, and that fear can lead to expensive delays. In this episode, we look at the DOL's Delinquent Filer Voluntary Compliance (DFVC) Program—what it's designed to do, the biggest misconceptions sponsors have about late filings, how multi-year caps change the strategy, and when this needs immediate legal at...

In this podcast episode, Kevin Long interviews Sheryl Bayani-Alzona and Nataki Gregory about their experience working with CT3, a new ESOP company. They discuss the challenges and successes of the ESOP transaction and how they were able to build a strong relationship through regular meetings. Nataki explains that they use teaching tools to educate their own team about ESOPs and the transition to f...

It's October and that means it's Employee Ownership Month. Our guest today on the podcast is Dr. Corey Rosen, the founder of the National Center for Employee Ownership. NCEO is the foremost resource and catalyst for employee ownership and ESOPs.  We discuss his new book, Ownership: Reinventing Companies, Capitalism, and Who Owns What, and we look at the history of ESOPs, the bipartisan support the...

Are you curious about the enticing tax advantages of Employee Stock Ownership Plans (ESOPs) but unsure how they apply to your unique situation? That's why, at Employee Benefits Law Group, we've developed The ESOP Tax Advantage Calculator – a powerful tool that demystifies ESOP tax benefits and provides actionable results.  In just five minutes, you can gain invaluable insights into the potential b...

In this podcast, Kevin Long discusses the 25-year history of income tax-free employee-owned companies and how ESOPs allow for tax-free S-corporation income. Joining Kevin is Noelle Montaño, the Executive Director of ESCA, the Employee-owned S Corporations of America. ESCA is the voice in Washington, DC that speaks exclusively for employee-owned S Corporations ("S ESOPs"). They delve into the legis...

Private equity has recently started employing ESOPS in their leveraged buyout transactions. It looks like strange bedfellows since they serve opposing interests. It's touted by PE and is being hailed by some in the ESOP arena as a great potential expansion of true employee ownership.  But is it really?

It's ESOP valuation season, and forecasting earnings is at the heart of this strategic analysis exercise. In this uncertain economy it's worth refocusing on the methods, process and approach that provide a sound basis for a prudent appraisal. In this podcast episode with guest Hillary Hughes of Prairie Capital Advisors, we explore the challenges and opportunities ESOP companies face when valuing t...

There has always been the notion that ESOP companies outperform their industry peers, are more resilient in recessions,  lay off fewer people, have more satisfied workers, lower turnover, and on and on. The research is well documented and irrefutable. But why is this the case? Is it the ESOP itself?

It's employee ownership month. But most people have never "met" an ESOP company. There is no better way to appreciate the ESOP phenomenon without encountering one, first hand. Whether you are an advisor, company owner, executive or employee you will enjoy listening to the journey of a company that has been ESOP owned since 1980.

There is more to equity compensation than just giving your employees stock in the company. In this podcast episode, Kevin Long addresses common overbroad assumptions about equity compensation and how an equity readiness survey helps you determine whether an equity compensation plan is right for your business.

In this episode of Speaking of Benefits, Senior Attorney Sheryl Bayani-Alzona talks about three things. The ESOP is a buyer, what happens to the shareholder after the transaction, and how the transaction is funded.

In this podcast, Kevin Long talks about how participatory management in an Employee Stock Ownership Company can strengthen the company for eventual sale to a third party.

Officers, Directors and Business Owners can have personal liability if the company's retirement plans aren't properly managed. Do you know who your plan fiduciaries are? Do you know if you're one of them?

In this podcast, Kevin Long talks about tools you can use to manage your ESOP repurchase obligation and get stock to the so-called ESOP " Have Nots " .

One of the most common errors the IRS sees in plan audits is the failure to include certain types of compensation when calculating employee 401(k) deferrals, and when making matching contributions. In this podcast, Marcel Weiland discusses two scenarios of a compensation failure in the area where we see it most often, bonus compensation. 

For ESOPs that find themselves in what is known as a "have and have-nots" situation, releveraging is one solution. In this podcast we're going to talk about the advantages and considerations to that solution.

A qualified plan such as a 401(k) may – but isn't required to – allow for loans to plan participants. The loans will be subject to the written plan document requirements and the Internal Revenue Code. In this podcast , Marcel Weiland covers an overview of the Code statute that deals with the loan amount and repayment schedule , and the potential consequence s of a compliance failure to the plan sp...

In this podcast, we discuss some good news from the the IRS. There are new opportunities to self-correct plan participant loan errors.

Today we're talking about retirement plan eligibility mistakes that can surface in M&A deals and why deal attorneys turn to us for both due diligence and post transaction guidance.  An eligibility mistake happens when an employee who should be included in the plan isn't and an employee who shouldn't be included is.

How do the costs and details of an ESOP transaction compare to a transaction where you sell your company to a private equity group or a strategic buyer?

The deal lawyers we work with appreciate having ERISA counsel with serious transaction experience on their side. We understand that deal cost and time have to be kept in check.  Our phased approach to employee benefits diligence puts you and your client in control of how much review is enough.

In a merger or acquisition, late or never-filed Form 5500s can be an expensive benefits problem to acquire and a sign there may be other issues with the company's benefits plan. In this podcast, Wendy Gilligan of Employee Benefits Law Group provides some helpful general information for buyers and sellers.