PPACA Requirement for 1099 Reporting Axed

Congress has passed and President Obama has signed legislation to repeal a much-loathed provision of the Patient Protection and Affordable Care Act (PPACA) that would have required the issuance of an IRS form 1099 for every expenditure of $600 or more. The mandate would have kicked in on Jan. 1, 2012, but HR4 amended PPACA to eliminate the requirement.

In practice the provision would have forced companies to issue 1099s, for instance, to hotels for road trips, to catering companies for banquets, to paper companies for copy paper, and so on. Now everything reverts to the status quo ante—1099s are for payments for labor and services provided for outside of the company payroll.

A good way to keep your workforce fully informed of the provisions of PPACA is by purchasing and posting Personnel Concepts' Health Care Reform Employee Information Poster. Get yours today.


NOTE: The details in this blog are provided for informational purposes only. All answers are general in nature and do not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The author specifically disclaims any and all liability arising directly or indirectly from the reliance on or use of this blog.
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