Employment Taxes
IRS Continues Review of Employment Tax Compliance
The IRS is going full-bore with the Employment Tax National Research Project , having sent out over 2,500 employee comprehensive questionnaires that will determine the overall level of compliance with the employment tax rules – this includes the long-standing issues of employee versus independent contractor. Areas of particular focus by the IRS include the following: Workers classification Payroll tax reporting Executive compensation (409A, etc.) Independent contractors coverage under Section 409A
South Carolina Introduces Economic Development Act, Seeks Renewable Energy Investment
The government of South Carolina took steps this month to attract investment and job growth to the state. The Economic Development Competitiveness Act of 2010 (the Act), signed into law by Governor Mark Sanford, creates and alters several credit measures, as well as several changes to fee-in-lieu of tax arrangements. Many changes are also made to fair market value reporting structures, with the hope if providing greater transparency upon credit receipt. The South Carolina Renewable Energy Tax Incentive Program For tax years beginning January 1, 2010, the Act establishes the Renewable Energy Tax Incentive Program to encourage investment in renewable energy production.
HIRE Act Contains Several New Tax Incentives to Promote Job Creation
Last week, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act (HR 2847) . The law includes several major tax provisions designed to promote job creation as the nation’s economy continues to recover from recession. The Act introduces the “ Hire Now Tax Cut ” to qualified employers both in the form of payroll forgiveness for Social Security taxes paid for qualified new hires, as well as a tax credit for keeping those employees on payroll for 52 consecutive weeks. Click here to read CB&H’s recent Tax Bulletin on the HIRE Act for more information about these provisions. The Act also extends enhanced Code Sec. 179 expensing threshold levels through December 31, 2010. This extension means that the previous limits of $125,000 with a $500,000 cap will. Read More.
HIRE Act Offers New Tax Incentives to Promote Job Growth
Last week, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act (HR 2847) . The law includes several major tax provisions designed to promote job growth as the nation’s economy continues to recover from recession. The Act introduces the “ Hire Now Tax Cut ” to qualified employers both in the form of payroll forgiveness for Social Security taxes paid for qualified new hires, as well as a tax credit for keeping those employees on payroll for 52 consecutive weeks. Click here to read CB&H’s recent Tax Bulletin on the HIRE Act for more information about these provisions. The Act also extends enhanced Code Sec. 179 expensing threshold levels through December 31, 2010. This extension means that the previous limits of $125,000 with a $500,000 cap will. Read More.
HIRE Act Contains Several New Tax Incentives to Promote Job Creation
Last week, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act (HR 2847) . The law includes several major tax provisions designed to promote job creation as the nation’s economy continues to recover from recession. The Act introduces the “ Hire Now Tax Cut ” to qualified employers both in the form of payroll forgiveness for Social Security taxes paid for qualified new hires, as well as a tax credit for keeping those employees on payroll for 52 consecutive weeks. Click here to read CB&H’s recent Tax Bulletin on the HIRE Act for more information about these provisions. The Act also extends enhanced Code Sec. 179 expensing threshold levels through December 31, 2010. This extension means that the previous limits of $125,000 with a $500,000 cap will. Read More.
Federal and State Governments to Strictly Enforce, Penalize Misclassified Workers
In an effort to both protect employees and raise funds, the federal government is stepping up enforcement of misclassified worker penalties. Many firms wrongfully classify employees as “independent contractors,” both by mistake and in an effort to avoid certain payroll and benefit obligations. The Obama administration estimates revenues from this crackdown could amount to $7 billion over the next 10 years. Tough economic conditions have exacerbated the problem as more companies are willing to skirt the lines of legality to save money, and fewer employees are willing to report abuses for fear of losing their jobs. The New York Times reports on the effects. Read More.