Blue Ridge ESOP Associates Industry News

Kim M. Thompson

Recent Posts

Protect your ESOP from Fraud with Fidelity Bond Coverage

Posted by Kim M. Thompson

May 22, 2017 3:51:41 PM

Fidelity Bond Coverage for your ESOP

When preparing or reviewing your ESOP’s Form 5500 annual return, you may notice that Line 4e on Schedule H for large plans and Schedule I for small plans asks the following: “Was this plan covered by a fidelity bond?” It is important to not only make sure that your ESOP is covered by a fidelity bond, but that you have the required amount of coverage each year and that you relay this information to your third-party administrator or the party responsible for completing your Form 5500.

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Topics: fidelity bond

ESOP Hours of Service

Posted by Kim M. Thompson

Feb 9, 2017 10:45:36 AM

The hours of service is an important piece of information you will provide to your ESOP third party administrator (TPA) with your annual census data. An employee’s hours of service may be used to determine eligibility for participation in the ESOP and eligibility to receive allocations and to track years of service for vesting and breaks in service. Therefore, it is important to use the correct method (as defined by your Plan Document) to credit each employee with the correct number of hours.

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