Reform's effect on A/P: 2 major changes
Virtually every department will be affected by the changes in the healthcare reform law, but Accounts Payable may be able to make a case for having the largest workload.
Under the Patient Protection and Affordable Care Act, A/P departments will see two major changes when it comes to 1099 reporting.
The changes:
1. 1099s now go for the purchase of both goods and services. That means any payee receiving total payments over $600 must be reported.
2. Under the reform, corporations are now “1099-able” (Exception: If the corporation is a non-profit).
These changes are meant to ensure that all revenue is being reported. If your A/P department hasn’t done anything yet to prepare for these changes, don’t panic. There’s still plenty of time to get ready. Changes apply to all payments made after Dec. 31, 2011.
Readers, has your Finance department done anything to prepare for healthcare reform’s changes? Let us know in the Comments sections.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Webinars
Provided by Yooz
White Papers
Provided by Personify Health
Further Reading
Because of the American Rescue Plan of 2021, more companies and gig workers will be receiving Form 1099-K, Payment Card and Third Party Net...
B notice season (September through October) can be a minefield for A/P pros because nobody wants the extra work of calculating 24% backup w...
The pressure on Accounts Payable managers is relentless. You’re expected to be the flawless gatekeeper — process invoice volume...
Employee experience – including employee mental health – has become a higher priority for many organizations, according to rese...
Earned wage access, also known as on-demand pay, is being leveraged by your peers as a key recruitment and retention tool for workers who m...
“It’s not right, but it is a reality. … You don’t get a lot of budget attached to (vendor setup and maintenance tra...
