W-9 Automation - The Key to Unlock Seamless Tax Compliance Significance of W-9 A

1. W-9 Automation - The Key to Unlock Seamless Tax Compliance Significance of W-9 Automation - A Deep Dive Ensuring tax compliance is one of the biggest challenges that any business may face. Especially if your business involves the employment of independent contractors, vendors, or any other type of gig workers, you are obviously required to deal with a daunting task, i.e., 1099 filings. From preparing the forms to filing with the IRS and distributing the copies, there are a lot of processes involved in 1099 filings. But, one of the most crucial aspects is the Form W-9 Collection. Why? Let’s unfold. A Brief Overview of Form W-9 The W-9 is an IRS form that businesses can use to receive their TIN as well as certain other information such as their name, business name and type, address, backup withholding obligations, and, if applicable, FATCA reporting exemption codes. These W-9 data from your vendors will have a direct impact on the correctness of the 1099 forms you file to reflect the payments you made to them. Filing 1099s with improper information (such as an incorrect TIN) might result in penalties. This is why W-9s are regarded as a critical component of your year-end 1099 reports. Automation of Form W-9 Businesses typically collect W-9s from payees/vendors in PDF or paper format. In any case, acquiring W-9s is a little complicated and requires a lot of human work. This is where automation may help. W-9 automation minimizes the tedious paperwork and other complexities while greatly simplifying data collecting.

2. Not only that, but automating your W-9 procedure can provide you with the following advantages: ● Reduced Manual Intervention - You can eliminate the inconveniences of obtaining and maintaining paper W-9 forms, as well as the repetitive data entry. ● Data Collection Without Hassle – W-9 automation enables efficient data collection. ● Efficient Validation - By validating the acquired data, you may ensure proper 1099 filings and avoid future IRS rejections. W-9 Form Automation Using TaxBandits API When you have the right solution, such as TaxBandits API, enabling W-9 automation is simple. If you use software or a portal to onboard vendors, TaxBandits API integration can give a full solution to automate the W-9 process directly from your software/portal. You can enable the automation of W-9s in two ways by incorporating this developer-friendly API. 1. RequestByUrl Method - Initiated by the Payee Your vendors can directly commence the W-9 automation process using this technique. Here's how it's done: To complete W-9s, TaxBandits will generate a secure URL. This URL can be incorporated into your software/portal. During the onboarding phase, your vendors can use this secure URL to complete, e-sign, and submit their W-9s. TaxBandits will then do TIN Matching to confirm accuracy and securely store these W-9s, which may be used for 1099 automation at the end of the year.

3. 2. RequestByEmail Method - Initiated by the Payer 3. You can use this strategy to request that your vendors complete the W-9s through email. Here's how it's done: You can send an email to your vendors about W-9 completion using the TaxBandits API service. The vendors will receive an email with a link to fill out, e-sign, and submit their W-9s. TaxBandits, like the prior way, will validate and securely store these data. Use the TaxBandits API to enable seamless W-9 automation today! With the help of extensive documentation, the TaxBandits API enables seamless integration, end-to-end testing, and simulations. Click here for additional information on Automating W-9 with TaxBandits API.