RETHINK Benefit Plans€¦ · resulting from ESOP transactions and can help your company and its...
Transcript of RETHINK Benefit Plans€¦ · resulting from ESOP transactions and can help your company and its...
MEET THE TEAM
ESOP FACT#3
ESOP FACT#3RETHINK Benefit Plans
Understanding Employee Stock Ownership PlansESOP FACT
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Aronson LLC has been thinking ahead for its clients for more than 50 years. As business advisors to today’s most active industry sectors, Aronson’s experts provide innovative audit, tax, and consulting services that help clients rethink the way they do business.
RETHINK Everything
Aronson LLC’s dedicated team of employee benefit plan auditors focus on
all types of plans and have significant experience with ESOPs, including:
• Newly implemented plans with their first leveraged or
non-leveraged stock transaction
• Resolving errors noted in the annual ESOP valuation
• Resolving allocation errors noted in the annual recordkeeping
for the plan
• Terminating plans
• Plans with interest rate swaps
• Plans selected for IRS and/or DOL review
ESOP PLANS What We Do
If your 401(k) plan requires an audit, odds are that your ESOP does too, but the similarities end there. Read our fact pages to learn more!
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Selecting an experienced benefit plan auditor is one of the most important
decisions you can make for your business. Our dedicated team of experts is
uniquely qualified to help you navigate the nuances and complexities of ESOPs
and all other types of plans.
• Our industry-trained experts help you understand new laws, changing
regulations and industry developments.
• Aronson has been ranked by the DOL as one of top 25 largest employee
benefit plan practices in the country.
• Our practice has successfully passed DOL inspection with no deficiencies
found.
• Aronson is an AICPA Employee Benefit Plan Audit Quality Center member.
• Aronson is a PCAOB registered company.
Aronson’s experienced benefit plan experts help you rethink your approach to
ESOP plan compliance and best practices for your business.
THE ARONSON ADVANTAGE
In recent years, the Department of Labor has targeted ESOPs for inadequate company stock valuations, so ensuring that your ESOP is accurately valued is of utmost importance.
FACT #1
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DID YOU KNOW...
Unlike 401(k) plans, most ESOPs do not have a certification covering investments,
which permits a limited scope audit. As a result, the auditors must test investment
valuation and related activity.
Evaluate the competence and capabilities of the specialist used in valuing the stock
of the ESOP. Look for experienced experts to ensure that appropriate methodologies
and industry benchmarks are used.
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Improper allocation of shares not only affects your plan financials, but corporate financials and tax returns as well.
Leveraged ESOPs (ESOPs that have debt outstanding which was used to purchase the
stock) add another layer of complexity to plan accounting.
Dependent on debt payments made during the year, an allocation between the
allocated and unallocated shares will be recorded on the plan’s financial statements.
The allocation methodology must be based upon your plan document’s stipulations.
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DID YOU KNOW...
In addition to our employee benefit plan services, Aronson’s ESOP expertise includes:
Forensic and Valuation Services > Aronson’s forensic accountants not only
perform valuations for various entities, but also assist the Employee Benefit Plan
Services Group in assuring proper methodologies are used in plan
valuations.
Corporate Financial Reporting > Aronson’s skilled assurance professionals are
well-versed in ESOPs and how your ESOP will impact corporate financial reporting.
Corporate Tax > Aronson’s tax practitioners understand the tax ramifications
resulting from ESOP transactions and can help your company and its shareholders
minimize tax costs.
Mergers & Acquisitions > Our investment bank branch, Aronson Capital
Partners, provides strategic advisory services to help determine if an ESOP
is the right fit for you.
ADDED VALUE MEET THE TEAM
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FACT #3
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ESOP Accountant’s Opinions are one of the Department of Labor’s favorite targets for review when submitted as part of the Form 5500. A deficient audit may lead to multiple regulatory inquiries and significant penalities.
DID YOU KNOW...
ESOPs are very different than any other qualified retirement plan and many accounting firms
have little or no experience auditing them.
Develop a clear understanding of your auditor’s ESOP experience. Qualified auditors will have
many years of ESOP audit experience, perform several audits annually, and perform audits of
ESOPs that are in various stages of the maturation process.
“The firm provides one-stop service for all of our needs, and throughout the years, they’ve been able to provide great team continuity on engagements, proactively offering sound technical advice.”
— Phuong Truong, Adams Communication & Engineering Technology, Inc.
“Aronson’s auditors always listen to our needs and concerns and deliver solutions in a timely manner. I value their advice and expertise, and I look forward to working with the Aronson team every year!”
— Marion Vainumae, Carter Consulting, Inc.
“As a client for over 10 years now, we have always been extremely happy with the quality and level of service that Aronson has provided. Aronson’s staff is very responsive, knowledgeable, and easy to work with.”
— Lamar Edwards, Plexus Scientific Corporation
WHAT CLIENTS ARE SAYING MEET THE TEAM
ESOP FACT#3
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CONNECT WITH ARONSON
Employee Benefit Team
Kathryn Petrillo, [email protected]
Amanda Fuller, [email protected]
Mark Flanagan, [email protected]
Aronson LLC
Main 301.231.6200Fax 301.231.7630
Online Resourcesaronsonllc.comaronsonllc.com/blogs
Address805 King Farm BoulevardSuite 300Rockville, Maryland 20850
Social Media
Aronson takes pride in being an active member of the social media community. Don’t forget to Follow, Like and Share!
Aronson shows companies how to be more profitable, more competitive and better prepared for the future. Aronson’s proactive approach of identifying opportunities and addressing challenges head-on allows its clients to focus on their core business. Are you interested in learning how Aronson can help you? Contact us today!
MEET THE TEAM
Team Leaders
Kathryn Petrillo PartnerExperience: 25+ years
Amanda FullerPartnerExperience: 14+ years
Mark Flanagan Director Experience: 25+ years
Jillian GobboManagerExperience: 10+ years
Kayla KaniaSenior ManagerExperience: 10+ years
Emily ShapiroManagerExperience: 9+ years
Caitlin LynchManagerExperience: 6+ years
Mindy JonesSenior AccountantExperience: 10+ years
Ho-Ming FongManagerExperience: 7+ years
Katie Sciandra Manager Experience: 7+ years
Senior Staff
Composed of six team leads and five senior staff, Aronson’s benefit plan practice is unique in that they have a full-time staff dedicated to employee benefit plan services, something not seen in most other firms.
805 King Farm Blvd., Suite 300 | Rockville, Maryland 20850 | 301.231.6200 P | aronsonllc.com | [email protected]