TaxBandits API Enables Streamlined W-9 And 1099 Automation For Gig Software

Friday, 15 September 2023 02:00 PM

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Company Update

ROCK HILL, SC / ACCESSWIRE / September 15, 2023 / The gig economy is a fast-paced sector that is based on movement, autonomy, and on-demand services. Ironically, however, managing the tax requirements of gig workers and maintaining IRS compliance is a slow and traditional process. So, how can businesses that are a central facet of the gig economy bring their tax filing and compliance process up to speed? The answer lies in automating the process.

TaxBandits, an IRS-authorized, SOC 2 Certified e-file provider, now offers a complete option for business entities of all sizes to automate the W-9 collection and 1099 e-filing process with the IRS and State(s), as well as distributing recipient copies as needed. This is a fast-paced, automated solution to meet the speed of the gig economy without sacrificing accuracy or wasting administrative hours.

An Overview of TaxBandits W-9 Automation

  1. Streamlined W-9 Collection - TaxBandits API clients begin this all-inclusive process by requesting Form W-9 from their vendors. In the case of the gig economy, this will be their ‘gig workers' or independent contractors.

Clients can choose to initiate the process by sharing a link to complete the Form W-9 via email. If the client has an existing portal for self-onboarding, they are able to embed a secure link for their workers. Either way, the result is a simple, automated option for collecting the worker's tax information and e-signature.

  1. TIN Matching - A crucial step of the IRS compliance process is ensuring that you have the correct TIN for each independent contractor. Without this information, it is impossible to file a complete and accurate 1099 form at the end of the year. Once the new worker submits their Form W-9, TaxBandits performs TIN Matching to ensure that the SSN/EIN they have provided matches what the IRS has on record.

Verifying the TINs eliminates the need for businesses to send multiple follow-ups for this information and helps them avoid having to initiate IRS backup withholding.

  1. Secure Storage of W-9 Information - TaxBandits API clients are able to store and access all of the requested W-9s securely with TaxBandits since they contain the PII data. This information will be used later in the process when it comes time to file 1099 forms.

Automating the 1099 Process with TaxBandits API

  1. Ongoing Automated W-9 Collection and Storage - W-9 automation is the perfect solution for collecting and maintaining the crucial information needed to issue accurate 1099s at the end of the year. All of this information is verified and available for easy form generation.
  2. Record Payouts to Independent Contractors - Using TaxBandits 1099 Transaction API, the clients can record the payout transactions they make to their contractors and gig workers throughout the year. At the year-end, the administrative work required to determine which workers need a 1099 and which do not can be completely avoided. Based on the worker's W-9 information, the payment records, and the IRS Business Rules, the 1099 forms (1099-NEC, 1099-MISC, etc.) will be generated.
  3. Preview and Review 1099 Forms - TaxBandits API clients have the ability to review and approve the forms that are generated. If any updates or edits are needed, these can be made easily.
  4. 1099 E-filing and Recipient Copy Distribution - Once the forms are reviewed and approved, TaxBandits e-files them with the IRS and any required state(s). TaxBandits API also includes solutions for distributing recipient copies. TaxBandits provides printing and mailing services from a SOC 2 Certified printing facility as well as a secure Online Access option.

Unbeatable Features Offered by TaxBandits API

TaxBandits API offers not only a comprehensive automated solution but one that is centered around advanced, intuitive technology:

  • Seamless Integration - TaxBandits API was designed with ease in mind. This versatile solution allows businesses of all sizes and functions to integrate TaxBandits into their existing software for the seamless collection and e-filing of Forms W-9, 1099, W-2, 1095, and more.
  • Clear documentation - TaxBandits API has a developer-focused approach. This includes clear api documentation that sets developers up for success throughout the process.
  • Sandbox Environment and SDKs - TaxBandits API provides SDK libraries with sample codes in a variety of programming languages to meet the needs of clients and simplify testing the API from external sources. TaxBandits API clients can simulate and test the e-filing process before it enters the live environment using their Sandbox account.
  • Status Updates through Webhooks - TaxBandits API uses webhooks to notify clients of the status of forms throughout the e-filing process. Clients can configure webhooks from their developer control panel.
  • Advanced Security Measures - Data security is the highest priority of the TaxBandits team. Therefore, there is a layered security method complete with extensive security protocols and procedures in place to safeguard sensitive information.

When asked about the solution that TaxBandits API provides for businesses of the gig economy, Agie Sundaram, the CEO and Co-founder of SPAN Enterprises (parent company of TaxBandits), responded by stating, " TaxBandits API offers a unique and profound solution for managing and maintaining IRS tax compliance surrounding gig work. Given the continued growth rate of this industry, businesses searching for a solution for automating their gig workers' tax filing will find this and so much more with TaxBandits API."

Visit developer.taxbandits.com today to learn more and create a sandbox account.

About TaxBandits

The 1099 and W-2 experts! TaxBandits is a SOC 2 Certified, IRS-authorized e-file provider of 1099, W2, Form 1095-C, Form 1095-B, 940, 941, 943, 944, 945 and W-9, serving businesses, service providers, and tax professionals of every shape and size.

Payroll providers, affiliate software providers, and gig-related software providers, to name a few, can take advantage of TaxBandits API. The integration allows them to add value for their clients and expand monetization efforts. TaxBandits API enables seamless preparation and e-filing of 1099, W-2, 941, 940, and ACA 1095 forms. Software providers can also use the developer-friendly 1099 API to request W-9s and use that information to enable seamless 1099 automation.

About SPAN Enterprises

Based in Rock Hill, South Carolina, SPAN Enterprises has been developing industry-leading software solutions for IRS e-filing and business management tools for over a decade.

The SPAN Enterprises portfolio of products includes TaxBandits, Tax990, ACAwise, ExpressExtension, 123PayStubs, and TruckLogics.

For any media inquiries, please reach out to Stephanie Glanville, Content Writer at [email protected].

SOURCE: TaxBandits