The Administration's proposal would thus cover many existing S corporation ESOPs. At Congressional hearings, however, the Administration said that it was willing to work with Congress this issue. The current Congressional sentiment is for a much less restrictive rule, but also one that aims to curb S corporation ESOPs that are not primarily benefiting everyday employees. This suggests that some compromise may be forthcoming. Employee Ownership in Trinidad Trinidad and Tobago now has about 22 registered employee stock ownership plans, covering about 10,000 participants.
Companies register their plans as profit sharing plans with an employer stock feature.
Shares can be paid out to employees after five years in the plan, but the longer the employee holds them, the lower the tax, dropping to zero if held until retirement. Efforts are no underway to create a separate statutory authority for ESOPs. All rights reserved.