How Gig Companies Benefit from
TaxBandits API?
A Comprehensive Solution for Tax Compliance
- Integrate with our API for streamlined and centralized tax preparation in your own software.
- E-file tax returns with federal and state agencies and distribute recipient copies via Postal mailing or Secure Online Access.
- Automate the collection of W-9 Forms and e-filing 1099 Forms to eliminate manual
processing completely.
Increased Accuracy, Security, and Revenue
- Eliminate the erroneous filings that are part of the traditional filing process. Our API performs multiple data validations, including TIN Matching to ensure accuracy.
- TaxBandits stores all Personally Identifiable Information (PII) securely using advanced
security measures. - Integrating with our API creates new opportunities for monetization within
your software.
Tax Compliance for Gig Companies
TaxBandits supports the e-filing of all the major tax forms. For the complete list, Click here.
Form 1099-NEC
Used to report the payments made to non-employees (contractors, freelancers, etc.) if the total payment for the respective tax year is $600 or more.
Form 1099-MISC
Used to report miscellaneous payments (rents, awards, etc.) if the total payment for the respective tax year is $600
or more.
Form 1099-K
Used to report online card transactions and third-party network transactions if the total payment for the respective tax year is $600 or more.
Form 1042-S
Used to report amounts paid to foreign individuals that are subject to NRA Withholding and Reporting (even if no withholding is required).
How Gig Companies Automate 1099 E-filing with
TaxBandits API?
Request W-9s
TaxBandits API allows for easy collection of W-9s during the gig worker’s
onboarding process.
Payouts
Use our 1099 transaction API to record the payout transactions made to gig workers throughout the year. This data will be used by TaxBandits for year-end 1099 generation.
Preview 1099s
Before your 1099 forms are finalized, you can preview the details and make changes
if necessary.
File and Distribute 1099s
After finalizing and transmitting the 1099s, distribute copies easily via TaxBandits’ Postal Mailing and Online
Access services.
Exclusive Tools and Features that Developers Can Rely on!
Sandbox Environment
Our Sandbox allows you to simulate the entire e-filing process and TIN validation, providing a clear understanding
of the process.
SDK
TaxBandits offers SDK libraries in different programming languages like Java, Node.js, .NET, and Python to effectively utilize
our API.
Clear Documentation
Our documentation provides code samples for each endpoint, delivering clear guidance for efficient
API usage.
Advanced Security
TaxBandits is SOC-2 certified and utilizes multiple security protocols to safeguard sensitive information throughout the
entire process.
Success Stories of Gig Companies with TaxBandits API
TaxBandits API is completely flexible and serves as the ideal solution for various software types to streamline tax filings.
A leading software provider that acts as a middleman between contractors and builders automates their W-9 and 1099 filing process with TaxBandits API.
A popular niche-based software provider that offers a marketplace for dental professionals uses TaxBandits API for W-9/1099 automation.
One of the largest food delivery software in the U.S. uses TaxBandits API to automate the W-9 and 1099 filings for their contractual delivery partners.
Frequently Asked Questions
What are the most common tax forms that must be filed for gig workers?
- Generally, the payments made to contractors, freelancers, and gig workers are required to be reported on tax forms 1099-NEC, 1099-MISC, 1099-K, and potentially a few other 1099 forms. This depends on the type and the amount of total transactions made during the tax year.
- For example, if the payment made to a contractor exceeds $600, the payer should file Form 1099-NEC with the IRS and furnish the contractor with a copy.
The gig worker didn’t provide a W-9. What should be done?
- Generally, the payees, i.e., contractors, freelancers, and gig workers, must complete and furnish Form W-9 to the payer. This form comprises information such as TIN, Name, Address, business type, exemption codes for FATCA reporting, and Backup withholding.
- If the payee fails to provide TIN by furnishing W-9, the payer can withhold 24% of payments as backup withholding.
How can I integrate TaxBandits API into my existing gig software?
The integration process is comprised of three steps.
- Obtain TaxBandits Sandbox API credentials.
- Access the Sandbox account to test and simulate the e-filing process.
- Make a request to the TaxBandits team to migrate the integration from the Sandbox Account to the live environment.