The Obama Administration’s recently released fiscal year 2014 budget contains several provisions that are less than advantageous as they relate to retirement plans. These provisions are by no means final, however, as Congress has yet to work its way through them.
The proposed budget contains two specific provisions that would greatly reduce the attractiveness of retirement plans to small businesses: Continue reading »
Lacking the brinkmanship that citizens have become accustom to, Congress voted to extend the continuing resolution (CR) a full 6 days before the current CR was set to expire. President Obama signed the bill over the weekend. The Government is now funded through September 30, 2013 at the levels mandated by sequestration. Congress did make several minor adjustments to the sequestration mandated cuts. For instance, funding was moved to the Department’s of Agriculture’s food inspection service and DoD’s tuition reimbursement program. Continue reading »
You are probably aware that Congress passed legislation (the “American Taxpayer Relief Act”) early Wednesday morning, which the President is expected to sign into law to avert (or delay, depending on you viewpoint) the so-called “Fiscal Cliff.” While the legislation only delayed by two months widespread automatic spending cuts, it prevents many of the tax increases that were scheduled to take effect in 2013. With the exception of a targeted tax increase to the wealthiest Americans, the Act permanently extends provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and the Jobs and Growth Tax Relief Reconciliation Act of 2003, P.L. 108-27 (JGTRRA). It also permanently addresses Congress’ reoccurring task of “patching” the alternative minimum tax (AMT). Further, it temporarily extends many other tax provisions that had lapsed at the end of 2012 and others that had expired a year earlier. Among the tax items not addressed by the Act was the so-called “payroll tax holiday.” Thus, the temporary 4.2% rate for the employees’ portion of the Social Security payroll tax will revert back to 6.2%, effective January 1, 2013.
Below is a summary of the key tax provisions: Continue reading »
President Obama signed a continuing resolution (CR) funding the government until March 27, 2013 or exactly 1/2 of fiscal year 2013. The bill was signed on Friday, the 28th of September just in time for the start of the fiscal year on Monday, October 1st. The CR funds the government in accordance with the 2011 Budget Control Act which, for most agencies, is basically a 0.612 percent increase over the funding they received last year.
The main impacts of the CR are twofold, Continue reading »
- Reducing the lifetime gift exemption back to $1M (the 2009 level)
- Reducing the overall estate tax exemption to $3.5M (the 2009 level)
- Increasing the top estate tax rate back to 45% (the 2009 level)
- Making the trust assets in the IDGTs (Intentionally Defective Grantor Trusts) includible in the grantor’s estate
- Modifying the rules on valuation discounts
- Requiring a minimum 10-year term on GRATs (Grantor Retained Annuity Trusts)
- Making permanent the portability (carryover) of unused estate tax exemption amounts between spouses.
- Limiting the duration of the GST exemption to 90 years
Among the Administration’s various proposals on estate tax law changes, the most damaging one is the proposed reduction of the Continue reading »
Listen to Deltek’s Ray Bjorklund, Kevin Plexico and Deniece Peterson as they give their first impressions of the President’s FY 2013 Budget request and preview the FY2013 Federal Budget Request: Insights and Implications report to be released February 2012. This webinar will provide insight into the Obama Administration’s FY2013 budget request and the information technology trends that will drive fiscal 2013 federal spending. Continue reading »
Currently certain federal government contracts permit government contracting firms to bill executive compensation federal agencies up to $693,951 annually for incurred costs, including employee salaries.
In December, lawmakers voted to expand the cap at most agencies to cover all government contractors, including highly-skilled engineers and scientists that also earn top pay.
What’s been your experience with cloud computing – at your own organization or when interacting with GSA? Was GSA’s May 2011 request for bids from industry for secure, cost-efficient cloud-based email solutions the opportunity you’ve been waiting for to enter the federal market?
The U.S. General Services Administration is the first federal agency to successfully migrate its employees to a cloud-based email service using Google Apps for Government. GSA’s successful transition is the first step in their effort to provide cloud email as a service option to other federal agencies (Source: The GSA Blog, July 26th, 2011)
Cloud IT systems help streamline agency operations, reduces inefficiencies, and free resources for other essential programs. The Obama Administration’s ‘cloud first’ strategy has challenged federal agencies across government to close the information technology gap with the private sector by identifying and migrating three IT capabilities to the cloud within 18 months. Already, 15 agencies have identified 950,000 e-mail boxes across 100 email systems that are going to move to the cloud. Continue reading »
The Government shutdown was averted, at least temporarily, as Congress passed a bill extending the continuing resolution for two weeks and President Obama signed the measure this afternoon. Despite the compromise that resulted in this extension, Democrat and Republican opinions are still as far apart as ever on federal spending and most pundits think there is little chance a permanent budget can be passed in the next two weeks. Many analysts believe that a shutdown is still likely.
The good news is Continue reading »
On Wednesday, Dec. 15th, the Senate passed the “Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010” (“2010 Tax Relief Act” or “Act”) and the House of Representatives passed it the next evening.
The only real drama this week was whether the estate tax provisions of the bill would be amended in the House, sending the bill back to the Senate and threatening the original deal. However, the bid to amend the estate tax provisions failed in the House Thursday night and the President signed the Act into law on Dec. 17th. Thus ends the story, for now, of what would happen when the 2001 and 2003 tax provisions, aka ‘the Bush tax cuts,’ expire at the end of this year.
It is safe to say this is an unusual tax act and not just because of the compromises and process that created it. Perhaps a better name for this new law would be the Temporary Tax Relief Act or the Sunset Tax Relief Act, for it is very difficult to find any provision in the law that will be with us after 2012. Moreover, it is not unusual for tax legislation to have both revenue raisers and revenue losers, or to even be revenue neutral, but this act contains no revenue raisers.
In terms of expected revenue impact, per the Joint Committee on Taxation, the most consequential provisions of the Act are as follows, in order of revenue magnitude: Continue reading »
What We Are Writing
- A Marriage of Inconvenience: GSA Schedule Contracts & The Contractor Code of Business Ethics & Conduct Clause
- Emerging Small Businesses: To Grow Your Business, You Must Plan For Growth
- Government Contracting: Look Before You Leap!
- GSA Schedules – Strategies for Success
- New Employee vs. Independent Contractor Considerations
- Pay on Display – Understanding the Executive Compensation and Subcontractor Data Reporting Requirements & Ramifications
- The GSA Schedule: Your Ticket to the Federal Market (May 2010)
- The New FAR Codes of Conduct and Compliance Program Provisions
- The Seven Deadly Sins (of contract compliance)