Integrated Tax Services for Marketplaces and Direct Sellers
In case you missed it, we recently announced that marketplaces and platforms using Hyperwallet’s payout platform will be able to simplify their tax form collection and annual tax filing through Hyperwallet’s Tax Services add-on. This feature is currently available to US customers through our Portal and Card solutions.
Our Tax Services add-on simplifies taxpayer identification and verification in order to dramatically reduce your company’s administrative burden around tax time. Utilizing a year-long data collection system that helps keep your company compliant, we’ve streamlined your end-of-year reporting process and tax form distribution.
Hyperwallet Tax Service Walk-Through
The new feature offers integrated W-9 form collection and taxpayer identification number (TIN) verification. In plain language, this means the system automatically collects taxpayer information from US payees (whether these payees are individuals or business entities). TIN verification is performed against the Internal Revenue Service (IRS) database to ensure the data is valid before payouts are processed, greatly improving your ability to remain compliant and avoid IRS penalties. The Tax Services feature also makes it easy to identify payees that fall under the ‘foreign persons’ status of international workers, which is helpful when it comes to withholding appropriate tax rates. Your payees can then use this information to claim eligibility for lower treaty-based tax rates.
We’ve been refining the Tax Services feature with our client, Crius, for a number of months now. During this period, we’ve been able to test and achieve a number of process improvements on their behalf. First, we managed to reduce—if not eliminate entirely—the cost of distributing 1099 tax forms to their Associates in the mail by utilizing an integrated e-distribution system within our Pay Portal. Now, Associates are automatically notified via email when their tax forms are available for download, making it easy for them to immediately save or print their annual tax document.
“Collecting tax payer information used to be a big hassle for us at Crius. Thankfully, that is no longer the case. Now we can rely on the tax data and verification services integrated within our Hyperwallet payout solution to streamline the process and reduce administrative backlog.” – Roop Bhullar, CFO Crius Energy
Secondly, we wanted to simplify the process of quickly exporting tax information from the Corporate Administration Portal. With the Excel export tool, clients can easily download their tax data in a format that can be quickly synced into their preferred tax vendor. For those currently without a vendor, we’ve partnered with 1099 Pro and IRS Compliance to provide our clients with easy annual tax reporting services.
Our Tax Services feature is available in a number of different W-8BEN and W9/TIN verification configuration options. We know many of our clients have been anxiously awaiting the release of this feature; if you’re one of them, don’t hesitate to contact your Account Manager.
Not on the Hyperwallet payout platform yet? Contact a Solution Expert today to learn more.