The Internal Revenue Service has posted on its website the newly revised payroll tax form that most eligible employers can use to claim the special payroll tax exemption that applies to many new workers hired during 2010. Further details on both the tax credit and the payroll tax exemption can be found in a recently-expanded list of answers to frequently-asked questions about the new law now posted on IRS.gov.
On April 15, the Office of Federal Procurement Policy published the maximum amount of executive compensation allowed under government contracts as $693,951 for fiscal year 2010. This includes accrued compensation. The compensation limit applies to the top 5 executives.
Employment Cost Index (ECI)
ECI represents the change over time in labor costs. It can be used in determining escalation for contract labor rates.
Table 5 - Employment Cost Index for total compensation, for private industry workers, by occupational group and industry; Professional, scientific, and technical services = .8 for 12 months ending March 2010
Table 9 - Employment Cost Index for wages and salaries, for private industry workers, by occupational group and industry; Professional, scientific, and technical services = .7 for 12 months ending March 2010
Consumer Price Index (CPI)
CPI represents the change in prices paid by consumers. It is often used as an economic indicator, as a means of adjusting dollar values, and as the escalation rate on government contract pricing (labor or materials).
Table 6 - Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): Selected areas, Washington-Baltimore, DC-MD-VA-WV = 3.1 for 12 months ending March 2010
The information provided here is in summary form and does not reflect the IRS tax codes, applicable state tax codes, Federal Acquisition Regulations or any other regulatory codes in their entirety.If a particular situation may be applicable to you, please consult your CPA or tax advisor.
