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3% Withholding Repeal and Job Creation Act of 2011

On November 16, 2011, Congress passed the "3% Withholding Repeal and Job Creation Act of 2011" (H.R. 674). President Obama signed the bill into law on November 21, 2011. The bill contains the following main measures:

• Permanently repeal the 3 percent withholding provision on government contractors

• Tax credits for businesses that hire veterans

• $5,600 credit for hiring long-term unemployed veterans

• $2,400 credit for hiring short-term unemployed veterans

• Credits of up to $9,600 for hiring unemployed veterans with service-related disabilities

• Simplify the certification process to make it easier for businesses to get the tax credit

• Modifies the income definition for determining eligibility for exchange subsidies, Medicaid and the Children’s Health Insurance Program – conforming the definition of income in the health law to the standards used by other federal low-income programs such as food stamps and public housing

Current Tax and Accounting

• House Approves Mobile Workforce Tax Relief Bill Accounting Today
• Sunset of Tax Benefits Leaves Uncertainty Accounting Today
• Taxpayer Advocates Cope with IRS Tax Refund Delays and Identity Theft Accounting Today
• IRS Proposes Regs on Deducting Local Lodging Expenses Accounting Today

Five Key Websites For Tax Season