Senate Fails to Repeal Health Care Reform Law 1099 Rule

By Staff Report

Dec. 1, 2010

The Senate on Nov. 30 turned back the first legislative efforts to repeal a portion of the health care reform law.

Two amendments—one proposed by Finance Committee Chairman Max Baucus, D-Montana, and the other by Sen. Mike Johanns, R-Nebraska—to repeal a requirement that employers furnish 1099 statements if they do more than $600 in business with a corporate vendor—failed to win enough votes to be attached to a food safety bill. The Senate approved the food safety measure on Nov. 30.

Small employers have complained that the reporting burden of the health care reform law requirement, which is scheduled to go into effect in 2012, is too great. While there is broad congressional support for repealing the requirement, the amendments failed for reasons unrelated to the health care reform law, Washington observers say. Democrats, for example, were concerned about language in Johanns’ amendment giving new authority to federal regulators to cut government spending.

Despite the setback, new proposals to repeal the 1099 reporting requirements are expected soon.

“Small-business owners voiced legitimate concerns that these requirements would be burdensome, and the Senate should act in response to those concerns. I am disappointed that we weren’t able to repeal these requirements today, but I intend to keep working until we do,” Baucus said in written statement.

The reporting requirement would raise about $2 billion a year, according to estimates by the congressional Joint Committee on Taxation.  

Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

What’s New at

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog


What is Earned Wage Access (EWA)? A Few Considerations

Summary Earned wage access (EWA) programs are an increasingly popular way for employees to access their...

benefits, earned wage access products, payroll, time and attendance

workforce blog


EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog


Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness