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Compliance November 21, 2011
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Included in a law giving tax credits to companies that hire unemployed veterans, President Obama has repealed a 3% withholding tax for government contractors.
Reported by PLANADVISER staff
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.