House, Senate Passes H.R. 674 Repealing 3% Non-Wage Withholding Requirement; Treasury, IRS Move to Define “Governmental Plan;" and Teacher Benefits Under the Microscope

Some good news for a change:  The House, Senate Vote to Repeal 3% Withholding Law.

After always seeming to be the messenger of gloom and doom, I actually have some good news to report for a change.  Both the House and the Senate have now voted to repeal the 3% non-wage withholding requirement set to begin applying in a little over a year to all Federal and state governments and their agencies, including their pension plans.  (Political subdivisions of a state, as well as their instrumentalities, would be excluded if they made less than $100,000,000 in payments annually.)  The withholding requirement would not apply to pension payments made to retirees and other beneficiaries, but it would apply to all payments made by a pension plan for property or services.

To read more about the Repeal of the 3% Withholding Law; the Treasury,IRS' Move to Define “Governmental Plan;" and Teacher Benefits Under the Microscope CLICK HERE