There are more changes that business owners should be aware of for the upcoming years as a result of the Health care reform act. For the calendar year starting January 1, 2012, all businesses will have to report virtually all payments of $600 or more to a vendor on IRS Form 1099. The key to this reporting is to obtain the taxpayer identification number (TIN) from all vendors a business makes payments to, and to have the proper accounting system in place by 2012 in order to track and aggregate those payments. Companies that do not comply with this filing requirement can face penalties of up to $100 per incident.
For more information on how your company may be affected, post a comment below or contact our Small Business Services Group at 440-449-6800.