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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

• Tax Extenders Legislation Advances in Senate Accounting Today
• Simplified Option for Claiming Home Office Deduction Now Available; May Deduct up to $1,500; Saves 1.6 Million Hours A Year IRS
• House Ways and Means Chairman Camp Releases Tax Reform Proposal Accounting Today
• IRS Offers Health Care Tax Tips to Help Individuals Understand Tax Provisions in the Affordable Care Act IRS

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