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.
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.