ABC TESTIFIES BEFORE IRS ON CONTRACTOR RULE: ABC December 5, testified before the Internal Revenue Service (IRS) on a proposed rule that reverses a long-standing agency position limiting how construction contractors can use the completed contract method (CCM) of accounting. Currently, contractors performing work on a housing project are being prevented by the IRS from using a more favorable CCM depending on whether the property owner is structured as a homebuilder or a developer.
The IRS has proposed an amendment to the Income Tax Regulations (REG-120844-07, Rules for Home Construction Contracts) that would allow contractors to qualify for the home construction contract (HCC) exception regardless of how the property owner is structured. “ABC is significantly concerned that any new rules that are put in place affecting tax accounting methodology beyond the clarification of HCCs will impact a substantial segment of the commercial construction industry, with detrimental economic consequences,” testified ABC Tax Advisory Group Chairman Richard Shavell & Company, P.A., Boca Raton, FL, a member of ABC’s Florida East Coast Chapter.
“ABC is pleased with the steps that the IRS and Treasury have taken to clarify some of the HCC definitional issues,” said Shavell. “Any regulatory efforts to address and expand the reach of these proposed regulations should be fully vetted with and understood by all industry stakeholders. We look forward to continuing to work with the IRS on these issues.”
ABC is continuing to work with the IRS and other federal agencies to help drive tax policy.
REGISTER NOW TO GET EARLY BIRD SAVINGS FOR THE 2009 NATIONAL CONVENTION:All ABC members and chapter staff who register before the January 23, 2009 deadline can receive $50 off the registration free for the 2009 ABC National Convention to be held Feb. 25 – March 1 at the Hilton Hawaiian Village Resort in Honolulu, Hawaii. Over the course of five days, convention participants will hear from experts on green construction, energy projects, building information modeling and diversity, as well as have ample networking opportunities to connect with peers and construction professionals from across the country.
Other events at the 2009 ABC National Convention include the Construction Leaders Symposium, providing seven timely education sessions for attendees; the Construction Showcase, featuring the industry’s top suppliers’ products and services; and the National Craft Championships, highlighting the nation’s best craft professionals representing 13 trades.
INDEPENDENT CONTRACTOR UPDATE: In October, 2008, Senator Edward Kennedy (D-Mass.), the Chairman of the Senate Health, Education, Labor, and Pensions Committee, introduced the proposed Employee Misclassification Prevention Act (S. 3648). S. 3648 is co-sponsored by Senator Barack Obama (D-Ill.) and Senator John Kerrey (D-Mass.) and would amend the FLSA to make it clear that improperly classifying employees as independent contractors is a prohibited act under federal law. S. 3648 would allow for liquidated damages and for civil penalties up to $10,000. According to GAO, more than 10 million workers in the United States are classified as independent contractors, but numerous studies have concluded that many of these workers are misclassified as independent contractors when they are really employees. A Massachusetts study found that 11.4% of the state’s construction workers were misclassified as independent contractors between 2001 and 2003. S. 3648 would also allow U.S. DOL and the IRS to share information on cases where employers misclassify workers. S. 3648 would also mandate that U.S. DOL performed targeted audits focusing on employers in industries such as the construction industry where a misclassification has found to exist in the past. S. 3648 is a companion bill to H.R. 6111 which was introduced in the House of Representatives in May, 2008. This legislation is a reminder to all construction industry employers that classification of workers will continue to be an issue in Congress in 2009. Unless an individual is also performing work for other companies as an independent contractor, it is generally presumed that the individual should be classified as an employee. Contractors seeking to designate individuals as independent contractors should be careful to follow IRS and U.S. DOL guidelines.
By Bill Harding, Chapter Attorney
E-VERIFY UPDATE:On September 30, 2008, President Bush signed into law appropriations legislation (H.R. 2638) which provides, among other items, $100 million to continue and improve the E-Verify program in fiscal year 2009. E-Verify, the federal government’s electronic employment verification system, is set to expire November 30, 2008, but now is funded to continue without formal congressional extension of the program through September 30, 2009. On October 6, 2008, DHS issued a fact sheet noting that more than 88,000 employers are currently using E-Verify. Approximately 6.6 million employment verification inquiries were run using this system during fiscal year 2008, compared with 3.27 million inquiries during fiscal year 2007. On July 31, 2008, the House, on a vote of 407-2, approved legislation (H.R. 6633) which would extend E-Verify by five years. On July 31, 2008, Senator Robert Menendez (D-N.J.) introduced legislation (S. 3414) in the Senate, which is similar to H.R. 6633. Two other bills (S. 3257 and S. 3093) have also been introduced in the Senate to extend E-Verify or to make E-Verify a permanent federal government program. These developments serve as a reminder to all construction industry employers that E-Verify will be available for the short term, and probably for the long term, as a means of verifying employment eligibility for new hires. In order to avoid IRCA violations, many contractors have already signed up for E-Verify and construction industry employers who have not yet done so should consider such a possibility.
By Bill Harding, Chapter Attorney
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Training Classes
Management & Safety Class Schedule
First Aid/CPR Classes
$50.00 each attendee – Member Price/$60.00 each attendee – Non-Member
Recertification only - $40.00 each attendee – Member Price/$50.00 each attendee – Non-Member Price
¨ January 14, 2009 1:00 – 5:00 p.m. – LINCOLN
¨ January 15, 2009 1:00 – 5:00 p.m. – OMAHA
¨ January 27, 2009 – 1:00 – 5:00 p.m. – LINCOLN
¨ January 29, 2009 – 7:00 – 11:00 a.m. - OMAHA
OSHA 10 Hour Class
OSHA requires a competent person on all job sites. This course ensures that your people have the necessary training to comply with OSHA standards CFR 1926.32(f) for a competent person. Training includes OSHA Construction Standards CFR 29 1926, Scaffolds, Ladders and Stairways, Housekeeping, Personal Tools, Electrical Hazards, Fall Protection, Materials Handling, Hazardous Communications and much more!
**CFR 192 OSHA Regulations Book for the Construction Industry with new steel erection standards will be available for $25.00** each for class participants.
$135.00 each attendee – Member Price/$240.00 each attendee – Non-Member Price
¨ December 17, 2008 – 7:00 a.m. – 5:30 p.m. – OMAHA
¨ December 23, 2008 – 7:00 a.m. – 5:30 p.m. – LINCOLN
¨ January 8, 2009 – 7:00 a.m. – 5:30 p.m. LINCOLN
¨ January 13, 2009 – 7:00 a.m. – 5:30 p.m.- OMAHA
¨ January 27, 2009 – 7:00 a.m. – 5:30 p.m. – LINCOLN
¨ January 28, 2009 – 7:00 a.m. – 5:30 p.m. - OMAHA
Focus Four Safety Training:
For employees who are starting to work in the industry or the seasoned employee who may need a refresher course in the four focused areas that cause the most injuries and deaths in construction. The course will cover the 4 subparts of the CFR1926 standard – falls, electrical, struck by and caught-in-between.
$90.00 each attendee – Member Price/$125.00 each attendee – Non-Member Price
¨ January 22, 2009 – 1:00 – 5:00 p.m.- LINCOLN
¨ January 29, 2009 – 1:00 – 5:00 p.m.- OMAHA
30 Hour OSHA Class
Federal Law requires each company have a designated trained safety coordinator. This will give your foremen, supervisors, safety directors or safety coordinators the expertise to comply with all OSHA and State requirements. This is an in-depth look at CFR 1926 and 1920 and NE 757 as they affect construction. Price includes study materials
$395.00 each attendee – Member Price / $595.00 each attendee –Non-Member price.
¨ February 4, 11, 18, 2009 – 7:00 a.m. – 5:30 p.m. – OMAHA
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Omaha Classes are held at the Education Center, 2602 Harney Street, Omaha
Lincoln Classes are held at the Training Center, 830 Westgate Blvd., Lincoln
PLEASE DUPLICATE THIS FORM FOR MULTIPLE CLASSES
Company: Address: Phone: Fax:
Names (please print): Class/Date: Cost:
Class/Date: Cost:
Class/Date: Cost:
Return Registration Form and Check Payable to Associated Builders & Contractors
830 Westgate Blvd., Lincoln, NE 68528 FAX 402-477-4522
Email-debh@abcnebraska.org