The new health care law, known as the Patient Protection and Affordable Care Act (PPACA) includes sweeping new changes to 1099 requirements. Every business owner will be required to send a 1099 for purchases of products or services of $600 or more in one year, from any company or individual. Currently the law only requires a 1099 for services from unincorporated businesses, individuals or for rents or attorney’s fees. The new law will mean a LOT more paperwork for all businesses. Companies will have to ensure that before issuing payment to anyone (even a company such as Office Depot) that they have all of the required information on hand. Stiff penalties that can be imposed for companies failing to issue the required forms.
To gear up for this impending wave, we’ve implemented an all new on-line 1099 reporting system as part of our point and click payroll service. The system tracks all required information, is user-friendly and available 24/7. Vendors can even be paid electronically. Contact us for more information.
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