Developments in Tax and Business
Safe Harbor Rules for Deposit of Employee Plan Contributions
The federal Department of Labor recently issued a final "safe harbor" deposit deadline for 401(k) plans, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRAs and Salary Reduction Simplified Employee Pension Plans (SEPs) with fewer than 100 participants at the beginning of the plan year. The regulations state that participant contributions and loan repayments will be treated as made in a timely manner if the amounts are deposited with the plan no later than the 7th business day following the date the amount was received by the employer. In the case of wages withheld, it's the 7th business day following the date the amount would have been payable to the participant in cash.
"Green" Building Risks Concern Owners and Contractors
Many construction industry participants believe that there are certain potential risks associated with green-built and LEED-certified projects but are unsure how best to manage these risks, according to a report issued in 2009 by Marsh Inc. The report notes that owners, contractors, and design firm executives involved in green design and construction are most concerned about financial risks, including the impact of green design, construction, and ownership on profitability, cost, and their ability to complete projects on time and within budget.
