Business 1099 and the recently passed health care bill (small business, suing, transaction)
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I was reading about this in another forum, and it appears that in the recently passed health care bill there is a requirement for businesses (and apparently self-employed) to start documenting transactions over $600 a year by 1099. Anyone looked at this yet?
Wow. This will be a huge burden on small businesses. I'm surprised this hasn't been reported widely. Then again, maybe I shouldn't be surprised.
Just another onerous burden from the federal government. I guess the good thing is that the burden must get larger in order to wake up more and more Americans about how intrusive the government has come.
I have a small business with 23 employees. My company has created jobs this year. Small businesses should be celebrated for creating jobs, goods, services and tax revenue. Instead, I feel like we are targeted for regulations and tax increases. I am hoping to retire in my 40s (I am 39 now), not because I want to stop working but because I am tired of dealing with increasingly silly regulations. When I retire I will sell my company to someone but whatever talents I have at creating jobs and growing a company will be out of the economy. I can't be the only small business owner who feels this way. The cumulative effect on the economy will be significant.
Oh, and here is another little surprise from the Health Care Bill:
How-the-new-wealth-taxes-will-hit-you: Personal Finance News from Yahoo! Finance (http://finance.yahoo.com/taxes/article/109773/How-the-new-wealth-taxes-will-hit-you?mod=taxes-advice_strategy - broken link)
At over 2000+ pages and rammed through so quickly that no one had time to read it - let alone analyze it - there are bound to be a number of more surprises!
Wow. This will be a huge burden on small businesses. I'm surprised this hasn't been reported widely. Then again, maybe I shouldn't be surprised..
How is it a huge burden? If a small business already has good accounting, then the only additional "burden" is obtaining W9s from more vendors and issuing a greater number of 1099s. Good records, which any successful business needs to have, will eliminate 95% of the burden.
It is not a new requirement, it just expands the existing requirements to include most if not all vendors.
How is it a huge burden? If a small business already has good accounting, then the only additional "burden" is obtaining W9s from more vendors and issuing a greater number of 1099s. Good records, which any successful business needs to have, will eliminate 95% of the burden.
It is not a new requirement, it just expands the existing requirements to include most if not all vendors.
For businesses like mine that don't employ a full-time accountant it will mean hours of work gathering info and verifying transactions that we made. We had over 3100 transactions last year that would be subject to verification. Or paying someone else to do it. Sure, that might create work for someone but that money would be better spent on someone who would help my company grow.
It's just another barrier to entry for small businesses.
For businesses like mine that don't employ a full-time accountant it will mean hours of work gathering info and verifying transactions that we made. We had over 3100 transactions last year that would be subject to verification. Or paying someone else to do it. Sure, that might create work for someone but that money would be better spent on someone who would help my company grow.
It's just another barrier to entry for small businesses.
It's this attitude that frosts my a$$ - okay accounting personnel are an expense, but without good ones you may not HAVE a business to "grow".
Accurate and timely information is key to running a successful business, IMHO.
It's this attitude that frosts my a$$ - okay accounting personnel are an expense, but without good ones you may not HAVE a business to "grow".
Accurate and timely information is key to running a successful business, IMHO.
No offense intended, Opyelie. I was either unclear or you took me out of context. Good accountants are worth good money. But the more needlessly complex the tax code is the more I have to spend money on something that should need to cost me so much money. Furthermore, my company is not large enough for a full-time accountant so this will definitely be an added expense for me.
How is it a huge burden? If a small business already has good accounting, then the only additional "burden" is obtaining W9s from more vendors and issuing a greater number of 1099s. Good records, which any successful business needs to have, will eliminate 95% of the burden.
It is not a new requirement, it just expands the existing requirements to include most if not all vendors.
Because most SMALL businesses don't have a full time accountant on hand.I see mine once a year and I keep very good records but this will just add more time for me to keep track of all these and probably cost me more money for my accountant to process these too. Most small businesses are barely making it right now,we don't need the added time or expense with this BS!
You're wrong in saying this is not a new requirement because it is. Right now I'm only obligated to send out 1099's to PEOPLE who sub contract off me for actually doing work,not my vendors where I purchase materials. To avoid doing extra paper work and adding expenses I will now cut out the smaller ones and just deal with less vendors. Great job Obama!!
You don't need an accountant to keep track of 1099 vendors - just a decent bookkeeper and a decently setup AP in your software. Just sayin'
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