Good news for small business owners — President Obama has signed the repeal of the controversial new 1099 reporting requirements.
The proposed reporting requirements were part of the Affordable Care Act, and would have required all businesses to issue 1099-MISC forms to vendors for all services as well as goods over $600. The repeal of this law saves small business owners and payroll administrators from a burdensome amount of added paperwork.
Here’s how the law stands now: you must issue a 1099 to anyone who is not an employee (excluding most corporations) if you pay them more than $600 for their services only. “With this bipartisan effort, we have removed a requirement that would have been an undue barrier to small business growth,” said Karen Mills, administrator of the Small Business Administration.
For more information about the current 1099 requirements for independent contractors, visit the IRS website.