To be fair, 1,099 of the opinions mentioned in the headline are probably negative ones. But leave it to the New York Times small business blog, You’re The Boss, to come at the issue from a different angle.
In a rare show of solidarity, both sides of the political aisle are hustling to repeal the 1099 reporting requirements, which are widely thought to be onerous for small business the nation over. Essentially, the rules require the reporting of a miscellaneous payments and expenses, which you can find in this eHow article.
Your typical small business may have their fair share of 1099-MISC forms to file after examining that list, and many probably don’t have the staff or time to deal with them in great detail. You can certainly see where that might add up to a headache for a business that probably already pays enough into Advil’s coffers as it is.
But the NYT’s blog argues that the effect it’s having on small businesses is probably overblown. Software like QuickBooks can churn out 1099s at the end of the fiscal year with relative ease, and businesses that are tracking their expenses as they should may not find a heavy additional burden.
Blogger Robb Mandelbaum argues that while it’s certain there will be more work and time required—which is a deal breaker in and of itself for many businesses—it’s not going to rise to a significant level for many businesses. In addition, while the reporting requirements seem daunting at first blush, credit and debit card usage is exempted, meaning the trip to the deli for your company party isn’t necessarily going to require you to file a 1099. You can worry about bigger issues like small business finance, at least.
But if you’re the owner of a small business, this report isn’t likely to sway you, as one reader commented in the NYT article:
“The entrepreneur is burdened with dozens of filings per year, minimum; many of these already require an accountant or bookkeeper,” commented the Agenda reader JNH last August when we first wrote about the controversy. “Tracking even more transactions costs even more. Death by a thousand cuts.”
As small businesses, do you find the 1099 laws to be a burden? Sound off!