The overhaul of the nation's healthcare system put a number of benefits into law, but one mandate that has business owners and lawmakers collectively up in arms is the new filing of Form 1099s. The new law requires businesses to file a 1099 form for every purchase from a vendor exceeding $600. Opponents of that measure say it will add significant burdens to their companies.
"The entrepreneur is burdened with dozens of filings per year, minimum; many of these already require an accountant or bookkeeper," The New York Times reported. "Tracking even more transactions costs even more. Death by a thousand cuts."
So far, it appears the measure is not going to be repealed anytime soon. As a result, accounts payable departments throughout the country must adhere to another compliance measure. Accounts and records tracking will become even more imperative, or else companies may face audits from the Internal Revenue Service.
There is some good news for business owners. The Form 1099 filing requirement does not begin until 2012, which means companies will have almost a year to update their accounts payable systems to ensure accurate tracking.