Reduce Friction with Hyperwallet’s 1099 Tax Reporting
Hyperwallet’s 1099 Tax Reporting make it easier for you to improve your overall tax compliance with the U.S. Internal Revenue Service (IRS) by simplifying taxpayer verification and tax reporting for year-end earnings. You can reduce your administrative burden, and that of your payees, with a self-service payee verification tool, tailored earning reports, and automated 1099 form distribution.
How 1099 Tax Reporting Works
When Hyperwallet’s 1099 Tax Reporting is implemented, the feature automatically collects your payees’ tax information to generate the W-9 forms. The verification of the taxpayer identification number (TIN) is performed in real-time against the IRS database before payees can proceed with their payment transfer. Hyperwallet’s Tax Reporting also separate US citizens from foreign persons (international workers) by collecting a W-8BEN. This form helps you determine the appropriate tax rate and reduce your risks of IRS penalties.
If you’re looking for a hands-off approach, you can take advantage of Hyperwallet’s integrated tax form feature, which can significantly reduce the cost of distributing 1099 tax forms thanks to integrated e-distribution within your payees’ Pay Portal. The tax data is processed annually to create the 1099 forms which are then filed automatically with the IRS. Payees receive a notification by email that their form is ready, allowing them to print or download their annual tax document directly from their Pay Portal.
Offer Tax Reporting to Your Payees
If your Hyperwallet payout solution features a Pay Portal Payout Experience, you can easily implement the 1099 Tax Reporting feature. Once configured, the Taxpayer Identification icon will appear on the action bar within the Pay Portal web and mobile interfaces. View the explainer video below for more details.
1099 Tax Reporting is not currently supported in an Embedded Payout Experience.
Contact a Hyperwallet Payout Solution Expert today for more information and pricing details.
*The information in this article does not constitute tax advice and should not be relied on as such. You should always obtain independent, professional accounting, tax, financial, and legal advice before engaging in any transaction.