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Understanding W-2 Automation

Stop manual data extraction from W-2 forms and explore the benefits of W-2 automation using the TaxBandits API.

The Wage and Tax Statement, also known as Form W-2, is a vital document that employers are required to furnish to both their employees and the Social Security Administration (SSA) on a yearly basis.

It also outlines the taxes deducted from the employee's pay, Includes federal income tax, Social Security tax, and Medicare tax.

This form holds significant importance for employees as it is necessary for completing their individual tax returns.

W-2 Automation
W-2 Automation
TaxBandits for Every Business

The W-2 Automation Process with TaxBandits API

Generate Form W-2

Generate Form W-2

TaxBandits' API facilitates accurate generation of W-2 forms using employee data, computes taxes according to tax rates, and ensures adherence to compliance standards.

E-file With SSA

E-file With SSA

The API enables direct electronic filing of W-2 forms with the SSA, ensuring Timely submission. This method offers instant confirmation of submission and receipt.

Distribute Copies to Employees

Distribute Copies to Employees

Automated systems can manage the distribution of W-2 forms to employees, utilizing secure electronic delivery or coordinating
physical mailing.

W-2 Automation Success Stories with TaxBandits API

W-9 Automation for Accounting software

A leading Accounting Software company replaced its manual W-9 collection process with TaxBandits API. Their clients can now request W-9s from their vendors directly from the software in just a few clicks.

Upon this request, a secure URL to complete and e-sign W-9 Forms has been sent to the respective vendors. Once they were done, the payers were notified through Webhooks, and the completed W-9 forms were made available in the software for them to access.

Affiliate Software

A popular Affiliate software program that offers affiliate marketing programs and acts as a middleman between these merchants and affiliates uses TaxBandits API to automate their W-9 collection from contractors and gig workers. This provides them with a simple and efficient solution for accurate 1099 filing.

By integrating TaxBandits API, they have enabled the automation of W-9 collection during the onboarding process of the affiliates. The W-9 data collected were securely stored in TaxBandits, and at the end of the year, TaxBandits automated the 1099 filings using those data and the payout transactions recorded throughout the year.

W-9 Automation for Gig companies

A large Gig Economy Company that connects gig workers and contractors with builders over a platform integrated TaxBandits into their software to automate the process of collecting W-9 Forms and e-filing 1099 Forms.

A secure URL generated by TaxBandits has been embedded in the contractors' onboarding page of their software. Upon clicking the URL, the contractors were provided with a secure portal to complete and e-sign the W-9s. Using those W-9 data and the payout transactions recorded, TaxBandits has automated the 1099 filings at the year-end.

Frequently Asked Questions about
W-2 Automation

1. What are the customizations allowed by TaxBandits API in W-9 automation?

TaxBandits API allows you to customize various aspects of W-9 automation with your brand.

  • Email Customization - The W-9 request emails sent to the vendors can be customized with your brand name, logo, and the ‘From’ email address.
  • Secure Url Customization - The form completion page provided to the vendors can be customized with your brand logo. Also, you can customize the redirection URLs when the vendor completes (or) cancels the W-9 process.
  • Webhooks Customization - The kind of details you receive through Webhooks can be customized. For example, you can request not to include PII data (Eg: TIN) in Webhook notifications.

2. How will I get notified when the vendor completes a W-9?

When a vendor completes and e-signs their W-9, TaxBandits will notify you through Webhooks. The webhook payload will include the W-9 data as well as the link to download the completed form. Also, if you have opted for TIN Matching, you can get the status of TIN Matching of the W-9s through Webhooks.

For more information, click here.

3. Is there a way to allow my vendors to choose between W-9 and W-8 based on their citizenship status?

Yes! By using the API endpoint WhCertificate, you can enable your vendors to choose between W-9, W-8BEN, and W-8BEN-E and complete the Form that is applicable to them.

Click here to see how it works.

4. Can I simulate the TIN Matching process in SandBox?

Yes! You can simulate the TIN matching process in Sandbox to see how it works.

If you provide any TIN that ends with 000, the TIN Matching status for the respective W-9 will be shown as failed.