Yesterday I told you about the requirement that was slipped into the health bill that businesses would have to file 1099s on all providers of goods and services over $600 to their business. This will now include corporations so you will have to do so for companies like PG&E, IBM as well as smaller corporations.
I had one of the people on the email list that said his business will now have to file about 3000 new 1099s at a cost he estimates at about $1300. He pointed out something I hadn’t thought about and that is he will also have to get the Federal ID number for all of these businesses.
I have verified that this requirement will take effect 2012 and it is estimated that it will raise $17 billion over a 10 year period.
Dan Lungren from California has introduced HR 5141 to repeal this onerous provision. Small Business California has been in contact with his office and we strongly suggest you write a letter supporting this legislation. If you want to do so send me a return email and I will send you a suggested letter. If you are in the Congressman district [ Sacramento/ Parts of the Mother Lode] let me know that also.
I have been trying to find rate filings for increases in workers compensation. It seems that most of the major players have not done so yet but what I do have is Everest will be filing a 5% increase, First Comp 13.5% Hanover 7.1% and Benchmark 12.34. There are other filings but they are really small carriers. As I have said before I don’t expect major increases in July except for a few carriers but watch out for January.
Yesterday I was interviewed on a local television channel on boycotting Arizona over their new immigration law. SF is not the only City looking at this and I believe the state is also considering something. In SF there is discussion of not allowing City contracts to businesses doing business in Arizona. My personal opinion is that I think it is a horrible law and I hope it gets struck down by the courts but I don’t think there should be a boycott. What do you think.
Small Business California
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