Feb. 11, 2011 — The House Small Business Committee recently met for its first talk about a new health care mandate that would require small businesses to file a 1099 form with the IRS for every vendor paid more than $600 a year, according to an advisory from the Automotive Service Association.
The committee is considering whether to seek repeal of the mandate.
“This new 1099 requirement will cause an avalanche of additional 1099 forms to be filed, and affect more than 36 million entities,” said Rep. Sam Graves, R-Mo., chairman of the House Small Business Committee. “At a time when we should be making it easier to create jobs, promote growth and invest in our economy, small firms don’t need yet another costly and burdensome mandate.”
Rep. Dan Lungren, R-Calif., agreed, and said the mandate conveys a negative message to the small business community.
“As one small businessman recently related to me, ‘This is what you would expect from someone who has never laid awake at night worrying about making a payroll,’” Lungren said. “He’s right, and we shouldn’t be adding to the worries of those who run small business enterprises.”
More information about the hearing is available on the ASA’as legislative website, takingthehill.com.