Rep. Todd Young votes to repeal health care law's 1099 paperwork requirement for small businesses

Press Release

Rep. Todd Young voted in favor of H.R. 4 on Thursday, a bill he co-sponsored that would repeal the 1099 requirement in last year's health care law. The bill passed the House by a margin of 314-112.

"This provision of the health care law will crush small businesses and slow job creation if it's enacted next year," said Young. "Today's vote to repeal the burdensome paperwork requirement is a huge win for Hoosier employers and employees alike, and will provide a boost to our economy."

Under current law businesses must report services performed by non-corporate entities, such as independent contractors, on 1099 reporting forms. The provision of last year's health care law would require businesses to file the form for every single business-to-business relationship that totals more than $600 in a given year, including basic business expenses such as phone and internet service, shipping costs and office supplies.

Many small business owners have said the new paperwork requirements are unnecessary and the cost of compliance would be devastating. Among them are 9th District resident Rick Hofstetter, the owner of the Story Inn in Brown County.

"It's hard enough for me right now without this requirement because it seems like the government is draining every available resource I have," said Hofstetter. "Additionally, much of the food I purchase for the restaurant comes from small local farmers, and many of them would go out of businesses if this goes into effect. It's time to knock the leg shackles off of small businesses so we can grow and hire again."

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