Small businesses around the country have been worried about the massive paperwork burden included within the Healthcare bill passed last year. The new law, which takes effect January 1, 2012, requires them to provide 1099 forms to every person or business with which they spend $600 or more each year (for more information on this see our previous blog post).
Lawmakers have been debating for months how to deal with the 1099 provision, named for the IRS form that it requires. On February 2nd, small business cheered as a successful bi-partisan vote in the U.S. Senate took place to repeal the 1099 requirement. In his January 25th State of the Union address, the President called the reporting rules a “flaw” in the Healthcare Law.
The House of Representatives is working on this and now has two bills passed by the Ways and Means Committee to be considered by the chamber as a whole, and is expected to pass with flying colors.
When and if the 1099 provision is repealed, small businesses will be greatly relieved, as the law could have burdened small business owners with the unnecessary paperwork involved in compliance. Small businesses across the nation are optimistic about the repeal of this legislation. We will keep you posted!