What is employee benefit trust?

[niyati]

I’ve heard the term Employee Benefit Trust (EBT), but I’m not entirely clear on what it entails. Can someone explain what an EBT is, how it functions, and how it benefits both the employer and the employees?

 

[danisjohn]

An Employee Benefit Trust (EBT) is a legal arrangement where a company sets aside assets in a trust to provide benefits to employees, such as bonuses, shares, or pensions. EBTs are often used for employee share schemes, helping align employee interests with company performance and offering tax planning advantages.

 

[Jarwish]

Employee Benefit Trust (EBT) is a trust established by an employer to award their employees with material benefits, i.e., bonuses, shares, or pensions. It is primarily applied in employee share ownership plans. When created and utilized as per relevant laws, it provides an advantage in taxation.

 

[jainnorton]

An Employee Benefit Trust (EBT) is a legal arrangement where a company sets up a trust to hold assets (often company shares or cash) for the benefit of its employees, former employees, and their dependents. It's used for employee incentives, share schemes, and remuneration.