Many of you may not know that in 2005 the Tax Increase Prevention and Reconciliation Act was passed and it included a provision that governmental entities withhold 3% on nearly all payments to contractors that work for these governmental agencies. This was to take effect January 2011.
In 2009 the American Recovery Act and Reinvestment Act delayed implementation a year. The IRS recently announced that they are going to further delay this until Dec 21st 2012.
The Office of Advocacy and many business organizations applauded this action but we continue to request that this unfair tax be eliminated as it will create cash flow problems for many small businesses contracting with the government.
Small Business California wants to extend our thanks to the Office of Advocacy and its Chief Council Winslow Sargeant. On a personal note thank you Winslow.
Today AB 400 will come before the Assembly Appropriations Committee. This would require businesses with less than 10 employees to provide up to 40 hours of paid sick leave to their employees and businesses with more than 10 employees to provide up to 72 hours.
Small Business California has been tracking this bill closely. It is expected that this will go into suspense because of the cost to the state for In Home Health Workers. When Assemblywoman Ma introduced this before the cost estimate to the state was $50 million.
Yesterday the California Insurance Guarantee Association [CIGA] Board of which I serve voted to approve an assessment for 2012 of 2.285 on all workers compensation policies. This is a reduction of the current rate of 2.559.
CIGA is the organization that pays for claims of admitted insolvent insurance companies. We have struggled over the last few years as about 26 workers compensation insurance have become insolvent. I am proud to say that with the help of a $750 million bond we never have missed a payment to an injured worker.
I am still looking for more examples of burdensome state regulations. Please send them to me. Small Business California is keeping track of your comments.
To see what we have already received go to www.smallbusinesscalifornia.org
Small Business California
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