Small Businesses Need Congress to Fix 1099 Provision

John Arensmeyer

John Arensmeyer

The new healthcare law has many benefits for small businesses: tax credits, state healthcare exchanges, cost containment and grants for businesses starting wellness programs, among others. Yet the 1099 reporting requirement provision of the Patient Protection and Affordable Care Act, which has nothing to do with healthcare reform, is not one of them. Small business owners around the country, along with organizations on both ends of the political spectrum are worried, and for good reason. If this provision isn’t fixed before it takes effect in 2012, millions of small businesses will be burdened with unnecessary paperwork that they don’t have the time or resources to deal with.

Under the 1099 provision, small businesses will be required to file a 1099 form with the IRS for the purchase of any goods and services over $600. This will require small business owners spend time filling out forms instead of focusing on running their businesses. For months, Small Business Majority has urged Congress to swiftly fix this provision. As a consequence of their inaction, the small business community has been bogged down in trying to resolve the 1099 issue, when it should be focused on educating small businesses about the benefits of the law and how to take full advantage of them. This does no good to the countless employers who need the kind of relief the healthcare law will provide.

In an economy where time means money, small businesses can’t afford more delays from Congress—they need action. Legislators on both sides of the aisle agree this provision needs to be removed from the law, and taking out the 1099 reporting requirement would be a bipartisan victory for lawmakers and a triumph for America’s 28 million small businesses. It’s time for Congress to come together and rectify this problem. Once this happens, we can begin implementing the Affordable Care Act and concentrate on small business owner’s No. 1 priority—bringing down the high cost of health insurance.

Add your name to the growing list of people in the small business community who are demanding congressional action as soon as possible.

Sign onto a letter urging Congress to put this issue to rest now.


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