New feature simplifies the collection and verification of tax information for 1099-classified workers
San Francisco, California – Hyperwallet, a top global payout provider to the new economy, today announced the launch of its Tax Services, an initiative aimed at streamlining the tax process for on-demand and marketplace businesses utilizing 1099-classifed workers. The Hyperwallet payout platform will now provide integrated US tax form collection and verification, as well as annual 1099 form e-distribution, enabling clients to drastically reduce the administrative effort required for tax form collection and annual tax reporting.
“Remaining compliant with the tax requirements of a 1099 workforce is no small task,” said Brent Warrington, Hyperwallet’s CEO. “We believe that our tax features are an important next step in providing a truly comprehensive payout solution for drivers, taskers, developers—and for the companies that pay them.”
Hyperwallet’s Tax Services provide a simple and convenient way for clients to integrate the collection and verification of W-9 and W-8BEN tax forms directly into their existing payout processes. Utilizing Hyperwallet’s embedded tax widget, clients can mandate that payees are required to complete the necessary tax forms before allowing payouts, or can implement graduated verification wherein payees are only prompted to complete their tax documents once they have received payments exceeding the reporting threshold established by the Internal Revenue Service. All taxpayer information is verified against the IRS database to ensure its validity.
Hyperwallet distributes digital copies of payee tax forms—W-9, W-8BEN, 1099-MISC, 1099-K—eliminating the need for slow and costly physical distribution. Tax documents are also hosted in the payees’ web-based payout portals, allowing for easy retrieval in the future. Clients can seamlessly export all tax information required for reporting purposes, or can implement Hyperwallet’s end-to-end solution and delegate reporting to the platform’s third-party tax partners.
The announcement signals Hyperwallet’s ongoing commitment to resolving the supply-side payout issues faced by on-demand and ecommerce platforms. Just last month, Hyperwallet revealed its expanded developer features and functionality, which included new software development kits (SDKs), additional API calls, and a bolstered self-serve developer portal.