On November 17, 2011, the U.S. House of Representatives gave federal contractors and subcontractors an early Thanksgiving present. By a unanimous vote of 422-0, legislators passed H.R. 674, repealing a requirement that federal, state and local governments begin withholding three percent of payments to contractors in 2013. The bill has been sent to President Obama...
Tag: Federal Tax
Tax Withholding on Contracts May Hit Hard at Small Businesses
Lately, the federal government has launched new or expanded preference programs to benefit small businesses, enabling them to compete better with larger companies and to keep their strong foothold in the economy. However, a little-known tax provision, if it remains part of federal law, is going to have a disproportionately harmful effect on those same...