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Did You Hear About How 1099s Are To Be Handled?

January 22, 2011

It is that time of year when 1099s and W2s are issued. There is a new 1099 provision that will affect your business. The healthcare reform bill came with a tacked on provision that, starting in 2012, requires all business to file 1099 forms for every vendor of products and services to whom they pay more than $600 in a year. Most folks I’ve spoken to about this are not happy. Even the Small Business Administration recently endorses revoking the rule, but two different amendments to repeal have failed.  Entrepreneur magazine’s   Facebook page lists some great business owners responses to this 1099 craze.

  • The little guy never seems to get a break.
  • I can’t imagine that someone thought that this would be a good idea for anyone.
  • Even though both Democrats and Republicans disagree with the provision, the repeal couldn’t get passed because of inane partisan politics. they can’t even agree on how to repeal it? Crazy.
  • This means more paperwork, more forms to buy, more expenses and more time.
  • It’s not really a big deal. Any real business is using some sort of accounting software which makes it simple to 1099 vendors. It’s like putting a stamp on an envelope – sure, there is a cost, but it’s hardly worth thinking twice about it.
  • Small business already have enough on their plate. We’re still trying to catch up with all of the paperwork that has to be done before we even ope our doors, and now they want to add another form for ech contractor?: I can understand sending in forms for over $6k, but a measly $600? This is ridiculous.

I’m just saying, that’s what they are saying!

At GAI (www.gunwel.com) we understand what it is like to run a business and all that is involved; and why it can be so frustrating. Give us a call today at 212-979-6830 and let us know how we can help. We are in your corner. Stop by for a visit soon.

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