Small Businesses Await Impact of Health Care Reform

Will the federal health care bill be a boon or bane for small businesses? More than half of NY Report’s survey respondents admitted they just don’t know. But whether health insurance premiums come down or not, one thing businesses can count on is increased administrative costs, says attorney and author Barbara Weltman. She advises small business owners to prepare for the following costs:

• Starting in the 2011 tax year, small businesses will have to include the value of healthcare on employees’ W-2s (whether it’s paid by the employer, employee, or a combination of both).
• Starting with payments made after 2011, small businesses will have to complete 1099 reporting for payments to all providers of goods and services of $600 or more (not just independent contractors).