Maryland Chamber Blog

President George W. Bush signed HR 2642 into law yesterday. This law, among other things, extends eligibility for unemployment insurance benefits by 13 weeks.

The provisions of the bill are effective immediately. Individuals must have worked 20 weeks to be eligible. The federal extended benefits are to be paid 100 percent from the federal extended unemployment compensation account. The money does not come out of Maryland’s Unemployment Insurance Trust Fund.

Read more:

• MarketWatch.com: Unemployment-insurance extension becomes law
• Baltimore Sun: Bill extends jobless benefits 13 weeks

Posted by Will Burns at 9:43 AM to Unemployment Insurance | Permalink | Comments (0)

The Flexible Leave Act, which was passed by the General Assembly and signed into law by Governor Martin O’Malley on May 22, will take effect October 1. The new law requires employers with 15 or more employees that provide paid leave to allow the employee to use any type of accrued paid leave to care for the illness of an immediate family member (child, spouse, or parent). The law only applies to employers that provide paid leave to employees.

The Maryland Chamber opposed the Flexible Leave Act and urged the Governor to veto the bill. However, now that the bill is law, employers should review their employment paid leave policies, and update accordingly.

Delegate Ronald George (R-Dist. 30) contacted the Office of the Attorney General to get clarification regarding the application of the law. In a letter dated May 28, Assistant Attorney General Kathryn Rowe stated that the law “applies to any leave taken after the effective date of the bill, regardless of when the leave accrued.”

Simply put, this means that an employee may use any earned leave as soon as the law takes effect on October 1. The law is not retroactive, and does not apply to any leave taken prior to the effective date of the bill.

In addition, according to the Attorney General’s Office letter, the law does not prevent employers from requiring employees to comply with the terms of collective bargaining agreements or employment policies, provided they do not conflict with the Act. However, it does prohibit employers from denying leave to a worker with an ill family member.

View a copy of the letter here (pdf). For more information, contact Allyson Black at ablack@mdchamber.org.

Posted by Will Burns at 8:25 AM to Labor & Employment | Permalink | Comments (0)

The State Department of Assessments and Taxation is implementing procedures to enforce the new transfer and recordation tax on transfers of controlling interests in entities that own real property in Maryland. The new tax takes effect July 1. Although the Maryland Chamber and other business organizations objected to the expansive reach of the Department’s proposed regulations that were published in April, the Department adopted the regs without change.

Department officials made it clear in a meeting last week that they intend to apply the tax broadly to transactions that are structured to avoid the tax. For example, despite a statutory exemption, the Department will attempt to impose taxes on transactions that exceed 12 months in duration if the entity cannot demonstrate a legitimate business purpose. The Department will shortly post on its website a copy of the tax report that must be filed within 30 days of a controlling interest transfer, along with FAQs. Contact Ron Wineholt for further information at rwineholt@mdchamber.org.

Posted by Will Burns at 3:30 PM to Budget & Taxation | Permalink | Comments (0)

The Maryland Association of CPAs posted a great article outlining Maryland’s new corporate reporting requirements. The article provides and outstanding overview that is easy to understand.

It was written by SC&H Group’s Beverly A. Richard, CPA, MST, who is chair of the MACPA’s State Tax Committee. I came across it via MACPA’s CPA Success blog.

As we mentioned earlier this week the new requirements are the result of legislation passed in the 2007 special session. During the 2008 session, the Maryland Chamber, in partnership with numerous other business organizations, worked to secure passage of SB 444 and HB 664, which reduced the most onerous and unnecessary aspects of the corporate reporting requirements.

For more information, email the Chamber’s State Taxation Consultant Karen Syrylo, CPA at ksyrylo@mdchamber.org.

Posted by Will Burns at 12:53 PM to Budget & Taxation | Permalink | Comments (0)

Today’s Gazette of Politics and Business features a story detailing Maryland’s shaky budget situation and outlining the importance of the November 4 slots referendum.

State revenues continue to tumble and are unlikely to level off in the upcoming fiscal year, Bureau of Revenue Estimates Director David F. Roose said this week.

Sales tax receipts have grown by less than 2 percent in the fiscal year that ends Monday, largely accounting for the depressed figures, he said.

”We had expected very low growth and we’re getting even less than that,” said Roose, noting that typical growth is between 4 percent and 6 percent. Income tax withholdings, which account for about half of all state revenues, are largely holding steady.

Read the full story here.

Posted by Will Burns at 8:45 AM to Budget & Taxation | Permalink | Comments (0)

The Comptroller’s Office sent this alert (pdf) to thousands of corporations regarding the new information reporting requirements.

The new requirements are the result of legislation passed in the 2007 special session. During the 2008 session, the Maryland Chamber, in partnership with numerous other business organizations, worked to secure passage of SB 444 and HB 664, which reduced the most onerous and unnecessary aspects of the corporate reporting requirements.

Now it’s time to prepare for the actual reporting. The first reports will be due October 15, 2008 for calendar year corporations. Remember, this reporting includes a “pro-forma” unitary combined return calculation, throwback apportionment, nonoperational income, manufacturers’ apportionment method, and origin sourcing for government sales apportionment.

Maryland Chamber State Taxation Consultant Karen Syrylo, CPA will be reviewing a pre-publication copy of the draft regulations and draft electronic input form next week. She will meet with staff from the Comptroller’s office, and she will be working with the Chamber’s Tax Committee, and partners like the Maryland Association of CPAs and Maryland Bar Association to provide comments on the draft regulations.

If you’d like to learn more, email Karen at ksyrylo@mdchamber.org.

Posted by Will Burns at 9:44 AM to Budget & Taxation | Permalink | Comments (0)