Business and nonprofit organizations create Employee Benefit plans for the benefit of employees or members. They are an established element of incentives packages offered by employers and are an important tool for recruiting, retaining, and rewarding their employees. They also provide employees with significant tax advantages such as:
The term "Employee Benefits" typically refers to employer-sponsored plans that are subject to the Employee Retirement Income Security Act of 1974 (“ERISA”) and have special tax rules. Depending on the size of these plans and the type of investments they own, organizations may be required to have an annual audit, file an income tax return and file information returns with the U.S. Department of Labor.
There are many different types of plans and benefits for employees or members including Health, Retirement, Insurance, Cafeteria, Stock Bonus Plans, Employee Stock Ownership Plans (ESOPs), and many others. These plans may be Qualified plans which meet the requirements of the Internal Revenue Code and as a result, are eligible to receive certain tax benefits. They must be for the exclusive benefit of employees, beneficiaries or members.
These plans have particular accounting and tax requirements and may employ a trust to hold the assets. Administrators and trustees are responsible for the faithful stewardship of its assets and for disbursing benefits as promised. It is important to engage the services of an accounting firm familiar with these complex requirements.
At Yoder & Company, we consider Employee Benefit Plans a separate and distinct service because of the unique laws and liabilities associated with them. We provide the following services to Employee Benefit Plans: tax management; consulting & planning; financial reporting & accounting; and other custom services.
We work closely with attorneys and plan administrators to meet your needs and comply with complex requirements. Our services help you minimize tax liability and disburse benefits as promised.