U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT LAUNCHES NATIONWIDE AUDITS:The U.S. Immigration and Customs Enforcement (ICE) July 1 announced that it is launching a nationwide audit of 652 businesses to determine whether these companies are complying with employment eligibility verification laws and regulations.
According to an ICE news release, the businesses “have been selected for inspection as a result of leads and information obtained through other investigative means.” However, the release adds that “due to the ongoing, law enforcement sensitive nature of these audits, the names and locations of the businesses will not be released at this time.” “Because ICE has failed to give any additional details, ABC is concerned that the unions may use this opportunity to target merit shop employers,” said Bob Hirsch, ABC director of legal and regulatory affairs.
The 652 businesses targeted by ICE will receive a formal Notice of Inspection to alert them of an impending records inspection. ICE is focusing its resources on the auditing and investigation of employers suspected of cultivating illegal workplaces by knowingly employing illegal workers.
NONRESIDENTIAL SPENDING INCREASES IN MAY: Private nonresidential construction spending continued its upward trend in May, increasing 0.5 percent. This makes the fifth straight month of spending increase, according to the July 1 report by the U.S. Census Bureau. However, on year-over-year basis, private nonresidential construction is down 3.3 percent. Overall, total nonresidential construction spending – including both private and public – is up 0.1 percent from April to $716.7 billion, but down 0.4 percent from May 2008 (see graph below).
Nonresidential construction sectors showing gains include manufacturing, up 4.3 percent, power, up 2.1 percent, and transportation construction, up 1.4 percent. From May 2008, manufacturing has seen the largest increase, up 55.2 percent, followed by conservation and development, up 13.5 percent, and power construction spending, up 12.6 percent.
On the other hand, commercial construction spending continues to perform poorly, down 5.1 percent on a monthly basis while religious construction, down 3.8 percent, and lodging, down 2.6 percent, were the worst monthly performers. On a year-over-year basis, communication construction still lags, down 28.7 percent, followed by commercial, down 28.4 percent, and lodging, down 17.8 percent.
DOL received at least two comments from union members voicing support for the additional reporting requirements, which the final rule would impose. ABC stated that although unions claim members have access to financial information, that information can be hard to get.
“Until now, much of the talk about the stimulus package has been just that, talk,” said Associated Builders and Contractors Chief Economist Anirban Basu. “We now approach the moment of truth. The stimulus package should have its maximum impact during the third quarter of this year, adding roughly 3 percent to annualized Gross Domestic Product. “It is expected that much of the improvement will evolve around transportation projects that will soon get underway, a boom to the economy generally and to the nonresidential construction sector particularly,” said Basu. “The fourth quarter should be similarly impacted, perhaps enough to bring the U.S. out of the ongoing recession
ABC’S CORPORATE PROFILE PROGRAM HELPS BUILD MEMBER BUSINESSES: ABC’s website, FindContractors.com, helps build member businesses by easily connecting buyers of construction services with ABC members that provide those services. Although every ABC member is listed in the searchable membership directory of FindContractors.com, Corporate Profiles offer ABC members the opportunity to stand out from the crowd.
Participants in the Corporate Profile program have the opportunity to display their company logo in their listing and have their listing appear at the beginning of the search results. In addition, Corporate Profile program companies also have a 50-word description highlighting the company’s expertise and a listing of up to 10 trade services offered.
IRS AUDIT UPDATE: On June 22, 2009, the IRS published a 12-part Audit Technique Guide for the construction industry. The guide is intended to assist contractors, subcontractors and others in the construction industry in preparing tax audits. The first chapter lists the groups who should be aware of the guide. That list includes contractors, subcontractors, commercial project owners, residential construction developers, highway contractors, construction lenders, architects and engineers, and surety companies. In outlining some specifics of accounting, the eleventh chapter of the guide provides information in a chart format of contractor costs per square foot for several types of jobs, including site work, foundations, framing, exterior walls, roofing, interiors, specialties, mechanical and electrical work. The guide may be found on the Internet by two methods. First, go to www.irs.gov, click on Businesses, under Tax Information for Businesses, click on Audit Techniques Guides (ATGS); click on the letter C – Construction Industry – click on (HTML View Online). Second, go to home page of www.irs.gov – type in search box – Audit Technique Guide Construction. By Bill Harding, Chapter Attorney
30 HOUR OSHA TRAINING
Do any of your key personnel need 30 Hour OSHA Training?
Because of increased OSHA activity, several companies have shown
an interest in a 30 Hour OSHA class.
WHEN: July 31, August 7 & 21, 2009
WHERE: Mahoney State Park (Cottonwood Room)
TIME: 7:00 A.M. – 5:30 P.M.
COST: $395.00 member price -- $595.00 non-member price
Lunch and daily park permit fees provided by ABC
If you are interested, please contact Chris or Deb at 402-477-4451.
Enjoy a safe July 4 weekend!