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
Webinars
Provided by Insightsoftware
Further Reading
Crooks have more tactics for committing payment fraud at their disposal than you think. For example, these are just the different types ...
Although Congress isn’t famous for cooperation, there was enough bipartisan support for the Secure 2.0 Act of 2022 (pages 817-946 of ...
The 2022 End-of-Year Sales Tax Rates and Rules report by tax technology solutions provider Vertex Inc. has both good news and bad news for ...
Increasingly clever cybercriminals are out to take your company’s money. They’d even stoop so low as hacking you with a purchase order ...
It’s that time of year again: Employer health insurance plans are up for renewal. For finance leaders, this period can feel like a lotter...
The IRS has explained how to handle taxes if a retirement plan participant doesn’t cash a distribution check and another check is issued....
