Many business owners are gauging how the new healthcare bill will impact their abilities to provide medical coverage to employees, but it is also important to consider how the bill will impact tax reporting.
The Boston Globe reports that the bill will change the way companies file Form 1099s to report payments. Whereas current business tax laws say that entrepreneurs only need to file Form 1099 when they make payments exceeding $600 to a person or business, the healthcare bill expands this measure to include documentation of payments to corporations or for merchandise.
Unfortunately, this will mean more paperwork for companies in the first years the measure is in place. It is set to take effect in January of 2012, according to the source.
At the same time, the Boston Globe predicts that the IRS will be able to match these payments dollar for dollar in tax returns. Thus, business incorporation could soon bring more profitable tax benefits to companies than ever before.
To avoid confusing filing procedures for business formation on top of new tax filings, entrepreneurs might be well-advised to turn to online incorporation services. This cost-effective option can take the hassle out of incorporation while still delivering the benefits.