A new version of the job creations bill introduced by Senate Majority Leader Harry Reid on February 11 slims down many of the provisions previously introduced in the Baucus-Grassley bill.
The Reid bill would:
- Fund highway and transit programs through 2010
- Exempt employers from Social Security payroll taxes on new hires who were previously unemployed
- Extend (section 179 expensing) tax break for businesses that spend money on capital investments
- Expand the use of the Build America Bonds program
Many of the provisions of the Baucus-Grassley bill are not included, such as:
- Extending the deadline to file for federal unemployment insurance
- The subsidy for Cobra health insurance, which expires Feb. 28
- The biodiesel provisions
An important "offset" provision includes a 30 percent withholding tax on payments to foreign banks, trusts, and corporations that fail to identify U.S. accounts, their owners, and assets to the IRS. See prior posts in this column and related podcast by me on the Foreign Account Tax Compliance Act.
I'll follow the development of the Reid Jobs Bill up to its implementation. I am doing research on tax issues and payroll management involving small business payroll services. This research is focused on the terms and conditions, etc. applied in hiring payroll management team providing online payroll services.
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