Corporate Client Services Provided by Hoopis Business Advisors
Executive Benefits Plans are special benefit plans that a business can provide to key employees (including corporate officer-stockholders). They can be used to attract and retain key employees by providing special benefits that are only available for a select group of management or other highly compensated employees.
If your company is like most, its success depends upon the efforts of its best people. That is why it is essential to hire and retain talented, hard-working individuals who can help your business prosper and grow. Competitive compensation and benefit programs are a fundamental component to attracting these professionals and retaining them for the future success of the business.
Knowing the true value of your business is critical to proper business planning and achieving personal goals. Through our valuation process, we can help answer the questions that will lead you to make informed decisions for your future.
Business planning frequently involves planning for closely held or family-owned businesses concerning what will or should happen to the business at the death, disability or retirement of an owner. Should the business be liquidated, sold to associates or others, or continued by the family? What is the value of the business now as a going concern, what will it be worth to the family and what will the estate taxes be? How will loss of value be made up for the family? Business Planning needs to be coordinated with personal estate planning to make sure that control and value of the business is maintained.
Qualified Plans generally refers to employer sponsored pension and profit sharing plans that meet certain ERISA and IRS rules. They generally must cover a broad group of employees and cannot discriminate in favor of highly compensated employees, such as officers or owners. If they meet the requirements, employer contributions to the plans are tax deductible, the earnings on the funds are not subject to income taxes, and the employees are only taxed when benefits are paid to them. Life insurance may be included in these plans to provide death benefits for the employees.
A Nonqualified Deferred Compensation Plan is an arrangement where the employer can provide extra benefits to a select group of key employees over and above the limitations on qualified plans. These plans can discriminate in favor of key people, with different plans for different employees. They can provide "golden handcuffs" on the key employees by means of delayed vesting schedules. While employer contributions to a plan are not currently tax deductible, the employer can deduct the amounts when paid to the executives or their beneficiaries. Life insurance can be used to provide cost recovery to the employer.