FOR IMMEDIATE RELEASE
Kim R. Todora
President Obama Signs H.R. 4 – Repeal Of Form 1099
PPAI’s Legislative Education and Action Day Yields Marked Results for Industry
IRVING, Tex., (April 15, 2011) – Promotional Products Association International (PPAI; ppai.org) the not-for-profit association for more than 8,000 members of the $16 billion promotional products industry convened its second annual Legislative Education & Action Day (L.E.A.D.), March 30-31, 2011 in Washington, D.C.
On Thursday, March 31, promotional products professionals from all over the United States from 21 regional associations and 26 States held 120 meetings with legislators and legislative aides to discuss five key issues: the impact of promotional products on the economy, employment, revenue generation and how Americans rely on and use promotional products in their daily lives, the repeal of Form 1099, limitations on the use of Independent Contractors, relief from the Consumer Product Safety Improvement Act (CPSIA) for small-businesses and amendment of the tax code to allow for the use of incentives in qualified employee wellness programs.
The President stated, “Today, I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law. Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork. I look forward to continuing to work with Congress to improve the tax credit policy in this legislation and I am eager to work with anyone with ideas about how we can make health care better or more affordable.”
The REPEAL – During the meetings, the PPAI industry leadership, small business owners and staff urged legislators to pass the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (H.R. 4) forthwith. Today, April 15, 2011, the bill was signed into law by President Obama. H.R. 4 repeals expanded information reporting rules that would have required the filing of Form 1099 for payments of $600 or more by businesses and expense payments of $600 or more with respect to rental property.
Common Senses – PPAI L.E.A.D. representatives asked legislators to see, touch, hear, smell and taste the impact of the more than 32,000 U.S. based promotional products companies, 95 percent of which are small businesses generating nearly $16 million in annual revenues and employing more than 465,000 Americans.
Consumer Product Safety Improvement Act (CPSIA) – L.E.A.D. representatives appealed to legislators for relief from the financial burden of the CPSIA third-party testing requirements. In conjunction with said requirements, L.E.A.D. representatives also requested that the Consumer Product Safety Commission (CPSC) be given the flexibility to provide reasonable exemptions to the testing and labeling requirements currently required by law.
Healthy Workforce – L.E.A.D. representatives proposed amendment to the tax code allowing the use of incentives by employers to encourage, recognize and reward participation in qualified wellness programs such as, programs that consist of health awareness and education, behavioral change, or supportive environment components.
Independent Contractors, No Limits – L.E.A.D. representatives worked to prevent the introduction of legislation challenging the classification of independent contractors. Representatives asked legislators to preserve the “safe harbor” provision of the law known as Section 530 and to continue allowing promotional products professionals to conduct business as independent contractors operating as principal business owners and sole proprietorships.
“We are extremely pleased with the efforts and outcomes made by our PPAI L.E.A.D. representatives and will continue to support and protect the vital interests of the promotional products industry and small-business interests in general,” said Steve Slagle, CAE, PPAI president and CEO. “Over the past few years, it has become increasingly important that we take the time to educate and impact the external forces now influencing our marketplace.”
PPAI – the promotional products industry’s only international not-for-profit trade association—offers education, tradeshows, business products and services, mentoring, technology and legislative support to its more than 8,000 global members. Promotional products are a multi-billion dollar industry and include wearables, writing instruments, calendars, drinkware and many other items, usually imprinted with a company’s name, logo or message. PPAI created and maintains the UPIC (Universal Promotional Identification Code), the industry’s only free identification system and universal company database. For information regarding Promotional Products Association International (PPAI) or to learn more about the proven power of promotional products (including research and case studies), visit the PPAI website at www.ppai.org or contact PPAI at 888-426-7724.