Sacramento, Calif. /February 19, 2010 –
A proposal being considered by the California Senate Budget & Fiscal Review Committee to require a 3% tax withholding on payments to independent contractors has reportedly been shelved for the time being. The Committee was scheduled to vote on the withholding proposal last Thursday, with a vote scheduled on the Floor later this week.
But, an outpouring of opposition to this proposal by SPEC members and over 900 other businesses and associations organized by the California Chamber of Commerce gave the Senate Budget & Fiscal Review Committee pause. Chairwoman Denise Ducheny expressed concerns about the impact of the withholding proposal on small businesses and decided the committee should explore some alternative options. After the committee voted on other budget proposals, John Norwood, President of SPEC met with the Chairwoman along with other business representatives. Senator Ducheny reiterated her concern relative to the cost/benefit analysis of this proposal. However, she stressed that the proposal was still subject to consideration as the Legislature struggles to deal with the unprecedented budget dilemma facing California.
SPEC encourages industry members to keep the phone calls, emails, faxes, and letters coming to ensure this proposal is not used as a budget gimmick by the Legislature! You are making an impact! A sample letter is provided below.
PLEASE JOIN SPEC TODAY, SUPPORT THEM SO THEY CAN CONTINUE TO DO THE GOOD WORK ON YOUR BEHALF.
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