The U.S. Senate voted Tuesday to repeal a portion of the healthcare reform legislation that would have made for much more onerous 1099 reporting for staffing buyers. The requirement, if not repealed, would take effect in 2012.

The bill now goes to the president, who has indicated that he supports the repeal, MarketWatch reported.

Ed Lenz, senior vice president, legal and public affairs, of the American Staffing Association, said the organization is pleased with the Senate's vote to drop the requirement.

"Every staffing firm client would have had to file a 1099 form on staffing firm purchases that were more than $600," Lenz said. "It would have just been a huge burden. … It would have been a major expansion of the 1099 filing requirement."

Mark Roberts, CEO of the TechServe Alliance, said the requirement would have called for companies to issue a 1099 to any business entity -- including corporations -- at which they spend more than $600. This could have resulted in a significant additional burden with some companies having to issue hundreds, or even thousands, of additional 1099s, Roberts said.

Both the ASA and the TechServe Alliance were participants in efforts to get the new requirement repealed.

The 1099 requirement was added in the Patient Protection and Affordable Care Act (the healthcare reform legislation), but it didn't get much focus at the time.

Existing law, without the new requirement, only calls for 1099s to be provided to service providers who are not corporations when more than $600 was spent, according to the National Small Business Association.