Posted on July 28, 2011

3 Percent Withholding Regulations

Beginning January 1, 2013, federal, state, and other units of government must withhold income tax of 3 percent to contractors for total annual payments of goods and services of $100 million or more.

For more information, including new requirements and exceptions, go to www.irs.gov and search Final Regulations on 3% Withholding Released.