Do all employees have to participate in the ESOP?

ESOPs established by smaller companies usually cover all employees who have satisfied the minimum age and service requirements.

No. However, in order to satisfy IRS nondiscrimination guidelines, the ESOP must cover a substantial percentage of non-highly compensated employees who have attained age 21 and completed a year of service. For this reason, ESOPs established by smaller companies usually cover all employees who have satisfied these minimum age and service requirements.

SES ESOP Strategies can help you to address a full range of reporting and compliance requirements.