NCC Automated Systems, an integrator and manufacturer in the food packaging, and ophthalmic automation industries, announced today that the company has formed an ESOP (Employee Stock Ownership Plan). In the transaction, ownership sold a significant interest to a newly created Employee Stock Ownership Trust, allowing current and future employees to gain a beneficial ownership interest in the Company without any personal cash investment.
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What is Diversification?
Section 401(a)(28)(B) of the Internal Revenue Code creates a requirement for ESOPs holding employer securities to allow for the diversification of a participant’s stock account once they become a Qualified Participant. Generally, a Qualified Participant is defined as a participant who has reached age 55 and completed 10 years of participation in the Plan. Satisfying these requirements triggers the beginning of the Qualified Election Period, which is generally defined as the 6-year period beginning with the first day of ...
When someone says “Happy New Year” or “have a good year”, most of us do not stop to think what that means. We automatically think 365 days, or the year 2017. But what does “year” mean in the ESOP world? As with most things involving an ESOP, one word can have many diverse meanings. Here is a summary of the most common uses of the word “year” when dealing with ESOP plan administration:
• Plan Year: This is defined in the ESOP ...
The firm formerly known as Steiker, Greenapple & Croscut P.C. is pleased to announce that Paul S. Fusco has become a named partner of the firm. As such, the firm has changed its name to Steiker, Greenapple & Fusco P.C., effective immediately.
"We have been thrilled to have Paul as a partner and greatly respect his work, his commitment to employee ownership, his commitment to his clients, his commitment to his partners and his commitment to the ESOP community," said James G. ...
Four attorneys with Steiker, Greenapple & Fusco, P.C., a boutique law firm focusing specifically on employee stock ownership plans (ESOPs) will be offering their expertise on (ESOPs) at different times and locations during October and November:
Steiker, Greenapple & Fusco P.C. (SG&F), will be offering their experience and knowledge on ESOPs at three conferences covering the following topics: Internal trustee review and annual valuation reports at The ESOP Association's New England Chapter Annual Fall Conference in South Portland, Maine on Oct. 6 and 7; What paralegals ...
Monaco Jr., in his mid-60s, knew he had several good choices to cash out of his investment in Unicast. He decided to sell to the folks he knew best, his employees. To accomplish this, he used an employee stock ownership plan, or ESOP.
ESOPs are a way to sell a company internally to employees. ESOPs enjoy several valuable tax benefits, including the possibility for a selling shareholder to defer capital gains tax on sale of shares to an ESOP and the ability ...
In two months, Amanda Ward will have worked to sell Vespoli USA racing rowboats for a full year — meaning she will be an owner of the Fair Haven company.
Some of Ward’s coworkers already own the company.
That’s because company founder Michael Vespoli is planning to retire soon and last May established an employee stock ownership plan (ESOP), giving the company over to all full-time employees who have been there for at least a year.
With no heir to the company after almost ...
If you own or have the inclination to own a small business, take time to become familiar with ESOP basics.
An ESOP is a profit-sharing stock bonus plan usually set up by the owners of a closely held business.
It spreads some or all ownership to employees of that business. It is also a tax-deductible contribution and tax-deferred retirement plan.
Shares are transferred to employees following legal rules, such as minimum hours worked, and value is disbursed years later, under other strict and complicated ...
Last month, a recipe for lemon cake filled with pastry cream and lemon curd spread quickly on Facebook, garnering 6,200 shares and 9,900 likes. Of the 300-plus commenters, some had followed the recipe and were displaying photos of their frosted creations, while others asked baking questions or inquired about dairy- and gluten-free versions of the recipe. Another contingent was just plain hungry. “I need a piece of that cake right now,” one person wrote.
The recipe and the Facebook page are those ...
King Arthur Flour, an employee-owned company headquartered in Norwich, Vermont, was named the 2016 ESOP (Employee Stock Ownership Plan) Company of the Year by The ESOP Association. The award was presented at the Association's 39th Annual Conference in Washington, DC on May 18, and accepted by several employee-owners on King Arthur Flour's Ownership Culture Team.
The award recognizes a company that shows a strong commitment to employee ownership–which includes promoting employee participation, wealth creation, and individual dignity and worth.
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