BN Daily E-Journal

Get your pen and pad of paper ready, 1099 paper that is. As part of the newly enacted Patient Protection and Affordable Care Act signed into law March 23, 2010, by President Obama, businesses will be required to report payments over $600 per year of goods or services made to anyone, including corporations, except entities exempt under 501 (a) charitys and non-profits. Read more here.
This will also effect you if you receive payments through credit card terminal. The credit card processing companies will be sending a new 1099 called 1099-k which will report your income received. Read more about this proposed law here.
You should start getting 1099 information as soon as possible to help aleviate being over paperworked by emailing or sending the form W-9 to all of your vendors. You can get form W-9 here.

By Sam K. Abdulaziz
Abdulaziz, Grossbart & Rudman

As many of you know, the Contractors State License Board and other public entities have started an enforcement program that would target contractors, both licensed and unlicensed, who are suspected of illegal activity in ten counties that have District Attorneys funded by the Premium Insurance Fraud Task Force. David Fogt, Chief of Enforcement, gave us an update.

Prior to this time, the CSLB had targeted unlicensed contractors with an average of 45 undercover sting operations conducted each year throughout the state.

The new program will redirect ten of those stings in counties with Pilot Proactive Enforcement Programs. This is funded by prosecutors, to include licensed and unlicensed contractors suspected of workers compensation, insurance, payroll and or withholding violations.

We will keep you informed as to any news.

Attorney Sam Abdulaziz of Abdulaziz, Grossbart & Rudman has been practicing construction law for over 30 years. He has written a book called “California Construction Law” which is updated annually. He represents numerous construction trade associations and contractors. He appears at Contractors State License Board meetings and has argued a number of cases before the appellate courts, including the California Supreme Court dealing with the “Pay-If-Paid Clause.” Abdulaziz, Grossbart & Rudman provides this information as a service to its friends & clients. This document is of a general nature and is intended to highlight areas of the subject matter being discussed and may not contain all of the information; it should not be used as a substitute for legal advice. This document does not create an attorney-client relationship, or protect any confidential information until a written agreement is signed. You should seek the aid and advice of a competent attorney, accountant and/or other professional instead of relying on the presentation and/or documents.

Each State is designated a share of the stimuluspackage, and California will receive more than $80 billion in funding.

The Stimulus package is expected to provide the following for California1:

• Expect to create and/or save 396,000 jobs over the next two years

• Includes over $15 billion for health and human services and $12 billion for education programs with $3.1 billion currently available for schools to prevent teacher layoffs and protect education programs

• Includes in excess of $4 billion spent on transportation infrastructure, more than half on highways, bridges, and roads; to date, $625 million has already been directed to 57 projects generating over 11,000 jobs

• Expect up to $35 billion in tax relief, including a “Making Work Pay” tax credit of $400 for individuals and $800 for families

• Includes an additional $100 a month in unemployment benefits for individuals, as well as a 65% subsidy for COBRA health insurance coverage

• Provides a 13% increase in monthly food stamps while recipients of Social Security and Supplemental Security Income receive $250

With the national unemployment rate at 8.5%3 and California’s unemployment rate at 11.2%3, the Stimulus package is bringing funds and spending to jumpstart the state’s economy and your employment opportunities.