Pres. Obama Signs Repeal of 3% Withholding Tax

Included in a law giving tax credits to companies that hire unemployed veterans, President Obama has repealed a 3% withholding tax for government contractors.

President Obama signed the 3% Withholding Repeal and Job Creation Act (H.R. 674) after the legislation passed the House of Representatives with a vote of 422-0 and a 95-0 vote in the Senate earlier this month. The mandate was originally introduced in the Tax Increase Prevention and Reconciliation Act of 2005.

H.R.674 is a bipartisan bill that repeals a requirement that federal, state and local governments begin withholding 3% of payments to contractors (financial advisers included) in 2013. The Senate and House passed the legislation on Nov. 10 and Nov. 17, respectively.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

 

«