Find Your Resource

The "Back to Small Business Job Protection Act" (the small business tax incentives feature of the Minimum Wage Bill) contains a number of provisions important to employee ownership. The bill has now been passed by the Congress and should be signed in the next few weeks by the President.

The American Taxpayer Relief Act (ATRA) made changes in the recognition period for built-in gains taxes for C corporations converting to S status. In the past, the law provided that such companies must pay tax on the sale of appreciated assets for 10 years after conversion.

The tax law passed by Congress would make a variety of changes in the rules for defined contribution plans, particularly with respect to limitations on contributions to 401(k) plans.

Starting in 2013, business owners selling their companies will face significantly higher taxes on the sale proceeds. Appropriately structured sales to ESOPs allow sellers to defer capital gains taxes, and higher rates will make that deferral more valuable.

In a new study, Towers Perrin analysts Michael Grund and Richard Ericson looked at 335 companies that voluntarily chose to expense options between April 2, 2001, and August 14, 2003 ( "Options Expensing Announcement Has No Impact on Share Prices," March 31, 2004).

The NCEO now offers a customized live PowerPoint-based fiduciary training program. The 90-minute session is designed to help inside fiduciaries understand their roles and responsibilities as fiduciaries.

The Labour Government in the United Kingdom has proposed new legislation to encourage employee ownership. It would replace the existing "Save as You Earn" plan, a highly tax-advantaged savings/stock purchase plan. The new plan would be based on a trust similar to a U.S. 401(k) plan.

The Co-operative Education Trust Scotland is pleased to announce the launch of its new university resource, "Democratic Enterprise: Ethical business for the 21st century." Designed for undergraduate students, Democratic Enterprise provides an open access, introductory-level analysis of democratic

John Case, a prominent writer on open-book management and the author of Equity, has launched www.retoolingcapitalism.com.

BrightScope.com is a potentially very useful Web site that ranks defined contribution plans in most companies filing Department of Labor Form 5500 reports, although some smaller plans are not yet included. The site went online in 2009.