Bi-Partisan Support on Repeal of 1099 Requirement
Republican and Democrat House Members are petitioning House Speaker John Boehner for repeal of the 1099 filing requirement that would force small businesses to fill out the document every time they buy more than $600 worth of goods or services from anyone outside their company. This is part of the health care law and is meant to close a tax avoidance loophole by goods and service providers. It is set to go into effect in 2012. The Senate also has bi-partisan support on the issue. A bill will be filed in the Senate for the repeal of the 1099 filing requirement.
Perini to Resign as DCAM Boss
David Perini is stepping down as Commissioner of the Division of Capital Assest Management (DCAM). Commissioner Perini was appointed in 2000 by Gov. Cellucci and continued to serve in the post through succeeding administrations. He will step down once Gov. Patrick names a successor. During his tenure, Commissioner Perini oversaw construction of new courthouses in Worcester, Plymouth and Fall River, the redevelopment of Foxboro State Hospital and construction of a state health facility in Worcester. He is also responsible for vast reform measures to the state bidding laws. Prior to taking this post he spent over 30 years with Perini Corp. as President and CEO.
RI Goodwill to Accept E-Waste
Goodwill Industries of RI recently announced that they have become a Dell "Reconnect" site to recycle e-waste (computers, monitors, printers, scanners, cords, etc.) this month. The agency expects to recycle between 300,000 and 400,000 pounds of e-waste annually and create local jobs. Donated equipment that meets the quality criteria will be resold. Devices in need of repair will either be refurbished or broken down into parts to be recycled. E-waste can be dropped of at the Goodwill Industries of RI corporate headquarters on 100 Houghton Street, Providence, RI.
OSHA Has Six Month Agenda
OSHA has set an ambitious agenda for the next six months and many items involve the construction industry. Among the goals are a compliance directive for the new crane and derrick rule, a final rule on confined space, injury and illness prevention, backing operations for construction vehicles and equipment and a silica ruling. The injury and illness prevention program includes employers seeking employee input on developing company safety programs, though OSHA has not released any specifics. MCAA Safety Director Pete Chaney stated "A lot of our contractors have had great success with programs that they've developed. If the program is really prescriptive, those contractors would have to change or trash already successful programs."
Welding Simulator Aids Training
The SimWelder by VRSim is a virtual reality tool to assist apprentices learning to weld and journeymen seeking further certification without the cost of consuming materials. The user dons a video helmet and utilizes a computer workstation outfitted with a simulated torch. The helmet's computer -generated arrows, crosshairs and audio feedback assist the student in training in both MIG and stick welding. Pipefitters Local 597 instructors say the SimWelder saves money and time while increasing safety. They now utilize two SimWelders in their classrooms.
Retainage Bill Filed for 2011
New England MCA / MSCA is supporting a bill that would limit retainage and provide for timely release. The bill was put forth by the Legislative Committee of the Associated Subcontractors of MA. The bill would limit the amount of retainage to 5%. Hearings on the bill could be sometime in the Spring.
Employers Kept Busy With Social Security Tax Cut
The extension of the Bush-era tax cuts signed at the end of 2010 includes a provision to reduce Social Security payroll taxes for most workers from 6.2% to 4.2% on wages up to $106,800. Employers must make changes to their payroll by January 31st. The employer tax rate for Social Security remains unchanged at 6.2%. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 was an $801 billion tax package.
Fairhaven MA Adopts Responsible Employer Ordinance
The Board of Selectmen in the Town of Fairhaven, MA recently passed a Responsible Employer Ordinance (REO) to govern all public construction projects. The REO requires contractors to agree, as a condition of bidding, to pay prevailing wage, provide health insurance, participate in a bona fide and recognized apprentice training program, maintain workers' compensation insurance, properly classify employees, higher legally documented personnel and participate in E-Verify.
PLA in Quincy for Downtown Redevelopment
Prior to the Holidays, the South Shore Building Trades Council and Street-Works LLC agreed to a Project Labor Agreement (PLA) for the Quincy downtown revitalization project. The project could employ more than 4000 tradesmen and women over 10 years. In the agreement, 25% of the jobs will be targeted to Quincy residents, employers must pay prevailing wage, have a bona fide apprentice program, provide health insurance, pension and workers' comp insurance. The project is said to cost $1.3 billion and is set to begin in 2013.
ABC Appoints New CEO and Pushes Agenda
Associated Builders and Contractors sent a letter to the House Committee on Oversight and Government Reform calling for fewer regulations that impact the construction industry. The letter called for an end to Project Labor Agreements, prevailing wage and job classifications. ABC also appointed a new president and CEO. Michael Bellman, former CEO of Bovis Lend Lease America, will take over as of February 1st.
Massachusetts and Taxes
In 2011 MA will increase, by 50%, the assessment on employers for a fund that provides medical insurance to the unemployed. The Unemployment Health Insurance Rate Review Board raised the employer contribution rate from $33.60 to $50.40 per employee in an attempt to close a deficit that is projected to reach $95 million by midyear. This increase comes as employers brace for the 40% increase in Unemployment Insurance tax. On a positive note, the MA corporate tax rate will decrease from 8.75% to 8.25%. The reduction is the second of a three-step reduction from 9.5% to 8%. This was done under the 2008 State Tax Overhaul Law.
