Our web-based plan administration system provides both speed and accuracy for clients while allowing direct and immediate access to appropriate information involved in the administration process. Additionally, participants can access their statement information online, and commence the distribution process online as well. All our software is proprietary-written, reviewed and updated by our in-house personnel. We maintain historical records of each employee, including hire dates, rehire dates, dates of birth, plan entry dates, eligible compensation, hours of service and leaves of absences. Each year we determine which employees meet the eligibility requirements to enter the Plan and which employees are eligible to receive an allocation, based upon your individual Plan provisions. We track each employee’s years of service, years of participation and vesting.

• We allocate all Company contributions, forfeitures, trust earnings and distributions to individual participant accounts in accordance with your Plan provisions.
• We allocate dividends and S corporation earnings distributions in accordance with your Plan provisions, whether the Plan is leveraged or unleveraged.
• We allocate shares that have been distributed and repurchased by the Plan and shares that have been “recycled” in accordance with your Plan provisions.
• In the case of leveraged ESOPs, we calculate the shares released from the suspense account in accordance with your Plan provisions and your ESOP pledge agreement.
• We track the cost basis and share price history of shares of Company stock acquired by the Plan, of shares of Company stock that are reallocated as forfeitures, and of shares of Company stock that are distributed and repurchased by the Plan.
• We maintain and track participant accounts for shares that must be separately tracked due to the requirements of IRC Section 1042 or IRC Section 409(p).
• We prepare annual individual benefit statements that reflect the account balances, account activity, and the vested percentages of each participant.

• We help determine the maximum ESOP contribution in accordance with the limitations under IRC Section 404.
• We calculate the maximum allocation limitation for each participant to assure that the allocations to each participant do not exceed the maximum "annual additions" limit under IRC Section 415.
• We perform nondiscrimination testing under Code Section 401(a)(4) and top-heavy testing under IRC Section 416.
• We test for compliance with the minimum coverage requirements of IRC Section 410(b).
• We test for compliance with IRC Section 409(n) with respect to the allocation restrictions that apply when a selling shareholder elects non-recognition of capital gain on the sale of company stock to the ESOP under IRC Section 1042.
• If requested, we test for compliance with IRC Section 409(p) to make sure that stock allocations do not result in a "non-allocation" year in the case of an ESOP that is sponsored by an S corporation. We also help you pre-test compliance before converting from a C corporation to an S corporation.
• We test employee termination rates to determine if there has been a partial Plan termination that requires full vesting of terminated participants' accounts.
• We prepare signature-ready Annual Return/Report Form 5500 and related schedules for filing with the IRS. In the case of larger plans that require a Plan audit, we work directly with your auditors to ensure that they have all the necessary information to complete their audit. They can access your Plan data on-line with your approval.

• We work with your trustees and your internal staff to prepare and reconcile Trust statements of receipts and disbursements and of assets and liabilities of the Trust.
• We work with your trustees and your internal staff to review and reconcile all Trust transactions, including leveraged purchases of shares of Company stock, leveraged ESOP share release calculations and Plan distributions and repurchases of shares of Company stock.

• We prepare participant distribution forms for termination distributions, diversification distributions, in-service distributions, and required minimum distributions that are custom-tailored to the provisions of your Plan document, ready for participant signatures.
• We prepare IRS Form 1099-R for all participants who have received distributions from your ESOP and file such forms electronically with the IRS.
• We prepare IRS Form 1099-DIV for participants who have received a pass-through dividend from your ESOP and file such forms electronically with the IRS.
• We provide expert advice and assistance should you need to consider changes in your distribution policies in order to spread out your repurchase obligations or to provide more Company stock for allocation to new hires.

For those companies who wish to further free up their HR staffs from the time consuming administrative duties regarding the management of their ESOPs, we can provide or assist in outsourcing the following services: Back to Top