CPA & Business Advisory Blog

Update on 3 Percent Withholding on Payments to Government Contractors

The 3 percent withholding provision for contractors, which was scheduled to take effect on January 1, 2013, cleared its first hurdle for permanent elimination.  On October 13, 2011, The House Ways and Means Committee overwhelmingly supported the repeal of the withholding provision and passed the measure.  Leaders from the House of Representatives have said the repeal of the bill will get a floor vote by the end of October.  Repealing the measure has been widely supported by contractors and industry groups, including the American Institute of Certified Public Accountants (AICPA).  Moreover, the repeal of the bill is supported by Republicans and Democrats alike, who believe the provision would place burdensome regulation on small business as well as negatively affecting cash flows.  

For more background on the 3 percent withholding provision and its impact on contractors, see our earlier blog on this topic. Have questions about this provision? Post a comment below or contact our Real Estate and Construction Group at 440-449-6800.

This entry was posted in CPA & Business Advisory, Real Estate/Construction Accounting. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.
© Copyright 2016 Skoda Minotti | Privacy Policy | Disclaimer | Remote Support
Cleveland 440-449-6800 | Akron 330-668-1100 | Tampa 813-288-8826
Website designed and developed by Skoda Minotti Strategic Marketing