What is the name of your state? Texas
I was employed by a public accounting firm. They had an ESOP plan in which I and other employees participated. They terminated the plan and several of us became fully vested. When they terminated the plan, the corporation issued each of us a 5 year, interest bearing note for our vested amount.
The employer is chronically late in making the payments, has high turnover, and has not secured the note as required by ERISA and IRS laws and regs. This quarter, they are now 13 days late and a call to their office said we would not be getting the checks until next week. They are due at the end of each quarter (last quarter end being June 30). The packet of information, signed by a partner at the firm, also included a schedule of payments. Our notes have about 2.5 years remaining. This quarter, we find out that the firm is splitting up and the former "partners" in the corporation (really C corp shareholders) are going separate ways, but the corporation is apparently staying intact. The receptionist won't transfer us to the partner, and the partner won't return phone calls.
1) How long can they wait to send payment? There are no provisions in the "note" we received as far as default or late payments. What constitutes a default? Are there universal rules governing what constitutes a default when no default provisions are in the note?
2) How can I get them to pay on time? Can I change the interest rate if they are chronically late? Should I get an attorney?
If they default on a note that was part of an ESOP plan, can we sue them back to the stone ages? The firm really sucked. We didn't trust the partners when we worked there, and we don't trust them now.
edit: Sorry - it was a C corp - they were considering an S election but never made one that I know of...
I was employed by a public accounting firm. They had an ESOP plan in which I and other employees participated. They terminated the plan and several of us became fully vested. When they terminated the plan, the corporation issued each of us a 5 year, interest bearing note for our vested amount.
The employer is chronically late in making the payments, has high turnover, and has not secured the note as required by ERISA and IRS laws and regs. This quarter, they are now 13 days late and a call to their office said we would not be getting the checks until next week. They are due at the end of each quarter (last quarter end being June 30). The packet of information, signed by a partner at the firm, also included a schedule of payments. Our notes have about 2.5 years remaining. This quarter, we find out that the firm is splitting up and the former "partners" in the corporation (really C corp shareholders) are going separate ways, but the corporation is apparently staying intact. The receptionist won't transfer us to the partner, and the partner won't return phone calls.
1) How long can they wait to send payment? There are no provisions in the "note" we received as far as default or late payments. What constitutes a default? Are there universal rules governing what constitutes a default when no default provisions are in the note?
2) How can I get them to pay on time? Can I change the interest rate if they are chronically late? Should I get an attorney?
If they default on a note that was part of an ESOP plan, can we sue them back to the stone ages? The firm really sucked. We didn't trust the partners when we worked there, and we don't trust them now.
edit: Sorry - it was a C corp - they were considering an S election but never made one that I know of...
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