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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 116143
Experience:  20+ Years of Employment Law Experience
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Thee tax money that a company does not pay because they are

Customer Question

thee tax money that a company does not pay because they are an esop and is not distributed to the employs where does it go
Submitted: 1 month ago.
Category: Employment Law
Expert:  LawTalk replied 1 month ago.

Good morning,

I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today. In order to give you a clear and concise answer, I will need some additional information about the circumstances, please.

1. What tax money that is not paid? What kind of tax money? Collected from whom, and not paid to whom?

2. ESOP? Employee stock ownership plan?

Doug

Customer: replied 1 month ago.
When your company is an esop you do not pay fed taxes. We are a $100 milliom company.Employees receive about 12% of tax money not paid to fed gov.what does company do with the rest .we have been esop company for 10 years Seems like company is becoming fat cow by not paying taxes and only distributing 12% to employees. The fed gov will never regain the taxes we did not pay. This is about as good as I can explain this way but I wasn't going to pay $59more to talk on phone put short and sweet the company gains a lot,the employee gets a little and the feds will get what little dab we pay when we cash in Thank You
Expert:  LawTalk replied 1 month ago.

I am unable to further assist you in this matter, and I am going to opt out of your question and open this up for other professionals.

Your question is being placed back in the question list for other professionals to see, and to respond to. You do not have to stay online for the question to be active. Should another professional pick it up, you should be alerted by email unless you actively disable this feature.

There is no need for you to reply at this time as this may "lock" your question back to me, thus inadvertently delaying other professionals' access to it.

I apologize for any inconvenience and wish you well in your future.

Doug

Expert:  Law Educator, Esq. replied 1 month ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
The ESOP gets a 25% tax break, the employees get about 1/2 and the other half stays in the plan for the company. So the company gets 1/2 of the tax incentive and the employees get the other half.
Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page , as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.
Customer: replied 1 month ago.
We get 100% tax break we are 100% employee owned this site advertises expert lawyers you haven't told me anything that I do not know now if you guys cannot answer my question I would like my money back I'm not going to pay you $38 do the answer I have gotten so far if that is the best shot you guys have got AT it I would like my money refunded. I am not going to pay $59to talk to you but if you wnt to talk to me where we can get to the bottom of this question I can supply you a phone number,if not I want a refund thank you for your attempt but it was totally unsatisfactory thanks for your attempt online
Customer: replied 1 month ago.
I would like an answer so far all I have gotten is reading material
Expert:  Law Educator, Esq. replied 1 month ago.
I do not want to give you more reading material, but rather than copy and paste the information from the article and for the purposes of supporting my answer, this link needs to be reviewed (copy and paste it to your browser) https://www.nceo.org/articles/esop-tax-incentives-contribution-limits.
The money that a corporation receives as tax incentives from having the ESOP goes back into the corporation, that is a benefit of the ESOP. If the company returns up to 25% of that to the employer they may, but anything left goes into the operating budget of the corporation.