Bob's Blog
Helping Small Businesses with Federal Procurement
Federal agencies provide approximately $400 billion in contracts each year that are small business eligible. There are over 275,000 small businesses in Pennsylvania that employ over 3.2 million people, and I want to ensure that they have the tools they need to grow. That is precisely why I hosted a Small Business Procurement Workshop at Lehigh University in Bethlehem. I want to make sure that federal procurement becomes easier for Pennsylvania businesses.
By partnering with the Greater Lehigh Valley Chamber of Commerce, Small Business Development Centers, and Lehigh Valley Economic Development Corporation, we were able to bring together about 75 businesses from across the region to learn how to do business with the government. The summit provided the informational toolkit these professionals will need to navigate the procurement process and strengthen their businesses. The Government Services Administrator David Ehrenwerth, along with leading experts in federal procurement, met with Lehigh Valley businesses to assist them with the process.
In these tough economic times, businesses need to find new customers and markets, and I believe this summit will help them do just that. For more information and a complete list of federal resources, please visit the procurement section of my website.
Pennsylvania’s Small Business Owner of the Year
Joe Santelli, owner of Santelli Tempered Glass in Monessen, PA, was recently named Pennsylvania’s Small Business Owner of the Year and was honored in ceremonies both in his home state and in Washington, DC.
Joe began his company’s operations in 2006 in a former steel mill, creating 23 jobs in Pennsylvania, which he doubled within a year. In 2010, after achieving $5 million in sales, he expanded his company utilizing a loan from the Small Business Administration (SBA).
Joe took advantage of key federal resources that promote business development, such as SBA loans and Small Business Development Centers. Utilizing these tools helps entrepreneurs meet the challenges of starting, sustaining and growing their small business.
Joe is one of 275,000 small business owners in the Commonwealth of Pennsylvania, which combined employ over 3.2 million people. Small businesses are the backbone of our economy and I will continue to advocate for increased access to capital and key federal programs that help businesses create jobs and grow revenue. I applaud the courage and entrepreneurial spirit displayed by Joe Santelli and millions of Americans in establishing such enterprises.
Tax Exemption for Small Businesses
Small Business owners may not know of the newly-revised payroll tax form, which eligible employers can use to take advantage of the special payroll tax exemption for new workers hired in 2010. This incentive was created as a part of the Hiring Incentives to Restore Employment (HIRE) Act, which I was proud to support. In addition to this provision, the HIRE Act provided for an expansion of the Recovery Act provision that enables small business owners to write-off certain capital expenses. I hope that many Pennsylvanian entrepreneurs will be able to take advantage of the provisions in this legislation to help improve their businesses and drive our economy forward in its recovery.
The payroll tax form has been posted on the Internal Revenue Service’s (IRS) website where you can find more information on this tax exemption.
In addition, many small business owners have expressed concern about the impact of the upcoming requirement mandating reporting of the value of health insurance coverage on employee’s Form W-2. The IRS confirms that employer-provided health coverage is NOT taxable. The IRS explains on its website that this reporting is for informational purposes, to show employees the value of their health care benefits so they can be more informed consumers. The value of the employer contribution continues to be excludible from an employee’s income and is not taxable. More information on this subject can also be found on the IRS website.
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