With new laws, comes new documentation...
If you are hiring and plan to take advantage of the tax brakes offered to those who hire a previously unemployed worker, you will need that employee to complete and sign form W-11 (or a statement showing the equivalent). This is part of the new HIRE act passed by Congress recently.
If you thought the tax code was long and arduous enough, Congress would like to inform you that they have added thousands of new pages for you to pour through. While many of the laws in the new health care bill deal with insurance, some have nothing to do with it except they are an effort to pay for the changes by raising taxes. The AICPA and a few other sources have done a noble task of summarizing this mammoth of a tax law change. It offers some benefits to those who are uninsured and small businesses, but it increases many reporting requirements which is not going to sit well with the HR and accounting departments as these are phased in over the next few years.
One change that will effect many but has not been widely publicized...starting in 2012 you have to send anyone who you pay more than $600 to a 1099. Corporations are no longer excluded. This is a major change and is going to create some major paperwork headaches.
High earners (those with income over $250,000) are clearly in the cross-hairs, so if this is you it would be wise to do some planning before this coming tax wave hits.
AICPA
FarmCPA
NY Daily News
Christian Science Monitor
One change that will effect many but has not been widely publicized...starting in 2012 you have to send anyone who you pay more than $600 to a 1099. Corporations are no longer excluded. This is a major change and is going to create some major paperwork headaches.
High earners (those with income over $250,000) are clearly in the cross-hairs, so if this is you it would be wise to do some planning before this coming tax wave hits.
AICPA
FarmCPA
NY Daily News
Christian Science Monitor
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