MN Law Change
After June 30, 2012, businesses are no longer required to withhold 2 percent from payments made to individual construction contractors.
For details, go to our website (www.revenue.state.mn.us) and see “Law Change for Individual Construction Contractors” under the What’s New tab in Withholding Tax or click here.
Accountant Corner’s Comment – Not sure if this is a good thing, or bad? Compliance was the aim of this law, not making it burdensome for taxpayers. If compliance was elevated by this law, and more taxpayers paid their fair share, then tax rates should drop. Simple, right? Now we just have to create a similar law for politicians, “as of June 30th politicians are not allowed to overspend our hard-earned tax dollars!”