A new Nebraska state law was enacted that expands the coverage of contractors within the state. The new law, LB 1001, modifies the current tax bond requirement for contractors to inflate its coverage. Currently, the surety bond is required before the start of any work on a contract and is conditioned to guarantee the payment of all taxes when due, as well as contributions due under the Employment Security Law that accumulate in connection with the contract. LB 1001 broadens this guarantee to protect any withholding required under the Nebraska Revenue Act of 1967. Existing law demands that the required surety bond be no less than $5,000. The new law also states that failure to reach the conditions of the existing law or releasing withholdings to a subcontractor without authorization from the Department of Revenue makes the contractor legally responsible for the full amount of the required bond that the subcontractor acquired. The contractor may decrease their liability to the point that they can prove that the subcontractor has paid the mandatory taxes and contributions to the state and its political subdivisions.
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Nebraska Contract Tax Bond
November 12, 2009 by Eric WeisbrotCategory: Commercial Bonds, Surety NewsTags: bond requirements, contractors, legislation, NE, Nebraska, surety bond, tax bond | Comments (0)
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Virginia Employee Benefits Tax Bond
September 5, 2009 by Eric Weisbrot
The state of Virginia has set forth a new law intended for Indian tribes named HB 96/SB 359. The law requires Indian tribes to follow the same benefit and tax payment laws as non-profit and governmental organizations. Indian tribes that choose to finance employee benefits through payments into a fund in lieu of taxes are required to make a deposit of cash/securities or post a surety bond. The new law became active upon enactment.Category: Commercial Bonds, Surety NewsTags: bond requirements, employee benefits, legislation, surety bond, tax bond, va, virginia | Comments (0)
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Colorado Leasing Company Unemployment Tax Bond
August 20, 2009 by Lisa Grimsley
Effective August 5, 2008, Colorado’s SB 114 amended its law to require employee leasing companies to provide evidence of security of its unemployment tax withholding. This may be done with a surety bond, cash, or a letter of credit. The amount of the surety bond should equal half of the average annual amount of tax that was levied the previous year. For new companies, the company’s own estimate of 50% of the estimated projected taxable payroll for the current year multiplied by the standard tax rate will calculate the amount of the bond. If the company does not wish to provide a bond, cash, or a letter of credit, they may instead provide independently audited CPA prepared financial statements or evidence that a bonded and independent qualified assurance organization has accredited the company.Category: Commercial Bonds, Surety NewsTags: bond requirements, co, colorado, employee leasing company, legislation, surety bond, tax bond, unemployment tax bond | Comments (0)
