Overview
In addition to federal payroll tax obligations, businesses must also comply with state-level payroll and employment tax requirements, as mandated by each state's tax and workforce agencies. These requirements differ significantly from state to state, covering different forms, filing frequencies, and thresholds.
The TaxBandits API provides a single, reliable way to automate state withholding and state unemployment insurance (UI) filings directly from your existing systems, without needing to build a separate integration for each state agency.
| State Withholding | State UI | |
|---|---|---|
| What it is | The amount deducted from an employee's wages to meet state income tax obligations | A tax that funds temporary financial assistance for workers who lose their jobs through no fault of their own |
| Who remits it | Employers, on behalf of employees | Employers, based on wages paid |
| Filing cadence | Typically monthly or quarterly, depending on the state | Typically quarterly |
| Reported to | The state's Department of Revenue (or equivalent) | The state's Department of Labor / Workforce agency |
How to automate withholding and UI filings
The endpoints you use depend on the state you're filing in and its specific requirements.
Each state defines its own form structure and data requirements, so the payload varies per state and per form. These endpoints apply only to a particular state's form:
- Create: Generates a new withholding or UI form for the respective state.
- Update: Modifies a previously created withholding or UI form.
- Get: Retrieves the details of a previously created withholding or UI form.
These endpoints use the same payload structure across all states and work the same way for both withholding and UI forms:
- List: Retrieves the forms created for a specific business or period.
- Delete: Removes an in-progress form before it's transmitted to the state.
- Transmit: Submits a completed form to the corresponding state agency.
- RequestPdfUrls: Returns a link to download the finalized PDF version of a form.
- Status: Checks whether a submitted form was accepted or rejected by the state.