On Thursday, April 14, President Obama signed into law H.R. 4, the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011.” The act, which Promo Marketing reported was passed by the Senate on April 5, will repeal onerous requirements that would have forced small businesses to file 1099 forms reporting payments for goods of $600 or more annually to other businesses.
“Today, I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law,” Obama said in a statement yesterday. “Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork. I look forward to continuing to work with Congress to improve the tax credit policy in this legislation and I am eager to work with anyone with ideas about how we can make health care better or more affordable.”
The new law will cause the use of 1099 forms to revert to their previous purpose, eliminating the need to report all business transactions over $600. Employers will still need to use 1099 forms to document payment for freelancers and contract workers.
How will H.R. 4 impact the promotional products industry? What does the 1099 change mean to you? Let us know in the poll and in the comments below.
