New 1099 requirements are coming as a result of the new Health Care law. Although most of the provisions are not implemented until 2014, many aspects of the law are being phased in. One item will have a tremendous impact on small businesses: expanded 1099 reporting requirements.
In the past, 1099s were generally required to be produced by companies who paid individuals that were independent contractors for services if the payments during the course of a year totaled at least $600. Now, the 1099 requirement will include not only for services performed by the individual but also for products, materials, etc.purchased from them. The attached article from CCH provides an example of how this will impact small businesses.
Despite the enormous challenge in complying with this new requirement, QuickBooks software has the capability of dealing with it. To stay on top of this before the regulation takes effect, consult a QuickBooks ProAdvisor to ensure your business will be in compliance.
Note: Requirement begins with tax year 2012
1099s due - 1/31/2013
