I have a hunch why businesses were so hesitant about reporting their health care costs to the IRS

[NNN0LHI]

http://www.portfolio.com/business-news/2010/11/03/businesses-get-the-house-they-wanted

by Kent Hoover Nov 03 2010

<snip>Republicans have vowed to repeal and replace health care reform, but that’s not going to happen as long as President Barack Obama wields his veto pen and Democrats hold a majority in the Senate, where they could hold up any such action.

Instead, expect another effort to repeal one provision in the new law that has made small businesses furious: a requirement that businesses file 1099 forms any time they spend more than $600 a year with another business. Small businesses complain this dramatic expansion of the 1099 requirement, which is intended to make sure businesses report all the income they’re supposed to, will create a paperwork nightmare if it goes into effect as scheduled in 2012. Democrats concede the provision must at least be modified to reduce its burden, so there’s a chance Congress could take up this matter in the lame-duck session.


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I believe it is because lot of employers are actually making money off their employees health care insurance benefit programs.

And they can't have us knowing that every time they raise their employees premiums they are actually making money off of them.

Its a big scam.

They can lie to us but they can't lie to the IRS. And when we received our 1099 they wouldn't be able to lie to us anymore either.

Don

[The Magistrate]

1. Probably Something To That, Sir

Every 'small business' owner of my acquaintance has fudged the books one way or another....

[Raven]

2. There's worse in this Bill: It provides that if you want to avoid

the paperwork nightmare, you can pay all your bills by credit card and the credit card company will file all the paperwork for you. I wonder how that little provision got into the Bill.

[tsuki]

3. I don't understand this. I have always had to file a 1099 form with

companies that were non-incorporated if I spent more than $600.00 with them.

If I used contract labour to keep out my landscaping and they were not incorporated, I had to issue a 1099 to the company at the end of the year.

That would mean, instead of 2-3 1099's a year, I could be issuing 200-300 1099's a year. It doesn't make sense. It would be a snow storm of paperwork for the IRS.

And no, I never made money off my employess health care insurance benefits program.

[Raven]

5. See my post above. This will be a boon to the credit card companies.

[tsuki]

7. It will still create a nightmare for the IRS. nt

[NNN0LHI]

9. Did any insurance carriers ever offer to kick back some of your employees premiums back to you?

Even though you never did it was it ever suggested to you that you could do that by anyone? Anyone meaning your accountant, tax consultant, insurance writer or anyone?

Don

[tsuki]

10. No, they were too busy hiking rates after Jebbles and Bill Nelson

destroyed the insurance exchange set up by Walkin' Lawton.

[NNN0LHI]

11. My father in-law who used to own his construction company used to get free trips to Vegas

He would get so many free trips he used to pass them out to his friends. He couldn't go on them all.

Ever get any offers like that from any insurance providers?

Don

[Recursion]

20. All kinds of salespeople offer stuff like that

I get golfing trips to Florida from my printer salesman.

I still don't see how that would appear on a 1099.

[NNN0LHI]

21. How about your insurance providers?

Do they do the same thing?

Don

[Recursion]

22. How should I know? I'm not in HR. But even if they are, how would this change that?

If the insurance rep is giving trips to Vegas to my HR person, he'll have to give the company I work for a 1099. Not me. I'd still not know.

[tsuki]

23. No, no and no. Just a 25% to 40% rate hike with a note that they

held premium increases to 15%, or what I call the "we're lying, what do you think you can do about it". Thank you, former insurance commissioner Bill Nelson.

Actually, any trips that I might have gotten went to Senator Bill Nelson after he dismantled the Florida insurance exchanges. He got 1.5 million for his senate run.

[madrchsod]

4. my wife and i fudged a lot when we had our business

one part was cash only and the other was taxable. we survived the 80`s doing this.

[Demstud]

6. Care to explain how that would work?

I'm not sure I'm buying your hypothesis. You should give some evidence.

[NNN0LHI]

8. Only evidence would be the information printed out on our 1099

And the companies want to continue withholding that evidence from the workers.

Don

[Recursion]

17. 1099s are not for employees. By definition.

Employees cannot get a 1099; they can get a W2. If your employer is keeping you in 1099 status, you can file a complaint with the department of labor.

[RollWithIt]

12. Ummm... no

1099 on businesses is actually a huge paperwork nightmare. So lets say I go to Staples and I buy a $601 printer. I have to file a 1099 on that. It's ridiculous.

[NNN0LHI]

13. This is about health care costs not printers

How much of a nightmare can it be to show how much the employer is paying for his health care for their employees?

Doesn't seem like them much of a big deal to me.

Unless they were trying to hide something that is. Then I could see how it would be a nightmare for some employers.

Don

[gmoney]

14. No, it's about raising revenue

It's a double-check on income for corporations. If there are 500 companies who submit 1099s for $1000 payments made to ABC company, and ABC company tries to report income of only $30,000 rather than $50,000+, then that will red-flag the return for the IRS to further scrutinize.

The previous set-up presumed that incorporated companies would have accounting practices in place that honestly report income.

But yes, it is going to be a big pain in the ass if I have to get a Tax ID number for every company I do business with during the year. It may have something of a chilling effect on spending, too, or at least comparison shopping. "I can save $40 if I buy this printer from XYZ, but I'll have to spend time tracking down their tax ID and filing a 1099 for them. Guess I'll stick with ABC... or just do without."

[Recursion]

15. No, this is about printers. If you spend more than $600 with a vendor you'll have to file a 1099

And I could do with reforming that.

[Recursion]

16. I think you're mixing up two provisions

This is about a provision that vendors will have to start getting 1099s (this is about getting taxes from the people and businesses your business gives money to).

There is a separate provision that will require W2s starting next year to disclose the amount spent on health insurance.

[AngryAmish]

18. No. This is a complete pain in the ass.

I have a small business and I spend more than $600 with around 100 businesses a year. Court reporters, hotels, car rental, restaurants, office supplies, cleaning lady, etc. At the end of the year I have to track each of them down and get their tax id's? Fuck you very much. Assuming it takes about half an hour each, that is...50 hours. I would much rather spend that time drunk.

And tax ids are very much like social security numbers. Imagine the identity theft. If you have a small company's tax id and a check from them then getting checks printed is easy.

This is the stupidest thing they have done in Washington since deciding to invade Iraq. And I make no money off health insurance. How? Kickbacks?

[Recursion]

19. This is the crap that makes people call us "anti-business" NT

[kath]

24. Maybe if a HUGH!1 number of small businesses didn't cheat on their taxes,

such measures to try to document their REAL income wouldn't be necessary.

Not at all saying that YOU do this, but surely you realize that many businesses, large and small, do all sorts of cheating. Cash transactions, two sets of books, etc.
The one that REALLY pisses me off is the rampant misclassification of employees as independent contractors.

[Gravel Democrat]

25. Does that piss you off more than

the despicable gang of warmongers that are spending Americas treasure drone bombing wedding and funeral parties?

1
2
3
4
5

Count to 5. Your government just spent $10,000 of your grandchildrens money fighting wars 8,000 miles away from you.

http://costofwar.com/

But some are "really pissed" at employees tax status.

Most Americans deserve exactly what they have bought. Some of us are stuck (for now) on the bus.