Federal regulations from the Department of Labor and the IRS require careful compliance, while employee ownership creates unique tax advantages that can deliver lasting value for businesses and their teams. Our role is to help you navigate both.
Our team of ESOP professionals provide plans that protect participants, strengthen financial reporting, and minimize the risk of penalties. At the same time, we deliver proactive tax strategies that maximize the benefits of employee ownership.
Our approach goes beyond checking regulatory boxes. From planning and preparation through reporting and support, we communicate clearly, provide timely updates on industry trends, and tailor our recommendations to the goals of your business. Our ESOP CPAs combine independent audit rigor with proactive tax planning—so trustees, sponsors, and employees can move forward with confidence.
How We Help (All in One, Seamless Experience)
We start by understanding your plan design, business goals, and timelines—then deliver a streamlined process from planning to reporting and beyond.
- Audit Confidence: Independent financial statement audits, compliance reviews (DOL, IRS, ERISA), internal control evaluations, and transparent reporting for sponsors and trustees.
- Tax Foresight: Ownership transition planning, Section 1042 rollovers for selling shareholders, multi-state tax optimization, and smart use of available credits and incentives—all aligned to your growth and cash-flow priorities.
- Year-Round Partnership: Timely updates on regulatory changes and industry trends, practical recommendations to stay audit-ready, and education that helps employees understand how ownership supports long-term tax savings.
Why Work With RP&B CPAs
Not all firms bring the same depth of ESOP experience or level of support as we do:
- Specialized ESOP Expertise: Decades of working with complex ESOP structures and transactions with over 100 active ESOP clients nationwide
- Proactive Communication: Clear timelines, responsive guidance, and no surprises—well beyond year-end deadlines.
- Technology-Driven Efficiency: Secure, efficient data collection and reporting to keep your team focused on operations.
Tax Compliance & Strategy: The Value You Capture
When partnering with RP&B CPAs, you unlock meaningful benefits, such as:
For the Business:
- Tax-deductible ESOP contributions that reduce taxable income
- For S Corporations, the ESOP-owned portion of profits is not subject to federal income tax (and at 100% ESOP ownership, the entity generally pays no federal income tax)
- Higher deductibility limits, including principal and interest on qualified ESOP loans within set limits
- Potential dividend deductions for C Corporations when paid or applied under IRS-approved uses
For Selling Shareholders:
- Potential capital gains deferral via Section 1042 rollovers (C Corporations meeting the 30% sale and reinvestment requirements)
For Employee Owners:
- Tax-deferred growth on their ESOP accounts, typically taxed upon distribution—building long-term retirement value
ESOP Benefit Plan Audits: What to Expect Working With Us
We make a complex process straightforward:
Plan & Prepare → Fieldwork → Testing & Verification → Reporting → Ongoing Support
You’ll receive a clear request list and timeline, efficient fieldwork with minimal disruption, meticulous testing aligned to GAAP and ERISA, and an actionable report with practical recommendations—followed by guidance to remediate issues and maintain compliance.