OUR THOUGHTS ON:

Three Percent Withholding Repeal Officially Complete

Construction

By Matt McKinnon

President Obama signed into law the Three Percent Withholding Repeal and Job Creation Act (H.R. 674) on November 21, 2011. This legislation was sent to the President the prior week, upon approval from the House.

The act eliminates the requirement that federal, state, and local governments withhold 3 percent of nearly all of their contract payments to any person for services or property. This withholding requirement was scheduled to take effect January 1, 2013.

In addition, this act included tax credits for employers who hire military veterans. These credits are available for qualified individuals who commence employment after November 21, 2011, but before December 31, 2012.

Contact your Schneider Downs representative if you have any questions on this new legislation.

© 2011 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person any tax-related matter.

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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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