Hey business owners, another treat from the health bill

[Newarcher]

I thought I would pass along a little known nugget that was crammed in the middle of the 2000 page health bill.

You business owners know how if you pay someone more than $600 a year in non-employee wages, you have to issue a 1099 copy to them and the IRS. Well guess what....better get that 1099 reporting process down pat because you are getting ready to start issuing a lot more of them.

Thanks to the health bill, any payment made after December 31 2011 to any entity (individual/company/corporation) for virtually anything (labor, interest, dividends, rent and now PROPERTY/GOODS) will require a 1099 if more than $600 annually.

That's right folks. You will be 1099'ing Office Depot for that new computer, TMobile for your business cell phone and monthly service charges, Staples for that new office furniture, suppliers for business inventory and supplies, etc. Every day to day business expense must be reported and kept so that at the end of the year you can determine who got more than $600.

So not only do you have the costs to capture the data necessary to determine who you paid more than $600, which is expensive and time consuming. But you also have to buy the forms and prepare the forms or pay an Accountant to do it for you.

Congrats....that's change you can believe in.

New

[m gardner]

I was reading the report the small business council puts out here and it was interesting. The health care bill reduces the number of uninsured non elderly by 32 million. Twentythree million still uninsured. If you have no coverage through an employer you need to purchase it by 2014 through one of 50 exchanges established and administrated by the 50 states or pay $695.00 (or 2.5% of your wages whichever is more) as a tax penalty. If you employ less than 50 people you are exempt from providing coverage. If you have less than 25 and they make less than $40,000 average you may qualify for up to a 50% tax credit. If you have less than 100 employees you must buy insurance from the exchange in your own state. The penalty for not providing health insurance to even 1 employee is $2000.00 per employee, the first 30 being exempt for calculating the tax penalty.

This is a real scam. The feds set this up so that the states bear the burden of cost of setting the system up and all penalties are enforced by the IRS and taken by the feds. They also made the penalties less than it would cost to comply so many I'm sure will opt out and pay the penalties so the feds get a real boost to revenue and we have to buy our own insurance or pay penalties. Figure it this way. You have 100 employees (the average cost of benefits for health insurance nationwide is $2.92 an hour) and you have to pay a $2000.00 penalty for 70 of them. That's $140,000. If you insure them all it's $607,360. The feds get the goldmine, we get the shaft again. At least that's how I read it.