August 30, 2010

1099 reporting requirements for expenditures over $600 on the agenda

On September 14, 2010, the Senate is scheduled to vote on two amendments pertaining to the 1099 reporting provision for goods and services expenditures over $600. The intent of that provision was to "clamp down" on tax evasion and was estimated to raise $17.1 billion over ten years towards the cost of the healthcare law. Small businesses complained that the requirement is labor intensive and expensive to administer. The options being voted on are: Eliminating the 1099 provision and the second one is to exempt businesses with fewer than 25 employees, raise the reporting threshold to $5,000, and exclude purchases made with a credit card.

Medicaid and other entitlement programs have grown since 2007. Causes of these increases include the expanding of eligibility and benefits requirements by the White House, Congress, and states. Medicaid is up at least 17%, food stamps up nearly 50%, welfare up 18%, and unemployment has increased nearly four times the rate in 2007.

Check out these and other healthcare related articles in the August 30, 2010 NAHU Newswire.

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