As most entrepreneurs will tell you, owning a business can be something of a juggling act. Between keeping up on inventory, marketing efforts, client acquisition and retention, team training and continued education, and staying ahead of the competition, salon and spa owners have a full day before ever even leaving the house in the morning. Supporting salon owners and managers while they navigate these daily hurdles and strive to achieve maximum business success is the core mission behind everything that the Professional Beauty Association (PBA) does.
That is exactly why PBA and its members launched a campaign to repeal the 1099 IRS reporting mandate. The 1099 reporting requirement, which would have taken effect in 2012, has been a major concern for small business owners already facing a slow economic recovery and limited business resources. The 1099 mandate would have been a costly and time consuming measure, making it necessary to file a 1099 tax form for every purchase over $600. Small businesses, including thousands of salons and spas and licensed beauty contractors, would have been required to invest in new software and collect additional information for each vendor. In an effort to comply with the mandate, small businesses would have been faced with more paperwork and reports every year, which would have increased accounting costs and exposed them to costly and unjustified audits by the IRS.
It is PBA’s strong belief that change only happens when its members, and all professionals in the industry, voice their concerns over legislation that would greatly affect their livelihoods and the future of the beauty industry. Through a successful grassroots effort, PBA and its members played a role in encouraging Congress to repeal the 1099 reporting mandate. Professionals from across the U.S. joined together to be part of PBA’s advocacy campaign against the 1099 mandate and made their voices heard by sending letters to Congress asking for the repeal. In addition, PBA signed onto coalition letters from the US Chamber of Commerce in support of its ongoing effort on behalf of small businesses everywhere.
The work has proven to be successful. H.R. 4, a bill repealing part of the Health Care Reform law requiring employers to file a 1099 form for each payment to a merchant in excess of $600, passed both the House and Senate and was signed by President Obama in April.
PBA will continue to keep its members and the industry informed of the potential impact of legislation at both the federal and state level. Thank you to all of our members that took action and joined our efforts to repeal the 1099 reporting mandate.