June 21, 2022
Introducing Drop-In Components
When we launched our W-9 and 1099 API, our goal was to streamline the never-ending complexities associated with collecting, issuing, filing and storing informational returns. Our customers have since shared how Abound could further reduce their compliance burdens. That’s why today we’re introducing our latest product simplification: Drop-In Components, pre-built embeddable UI that manages the W-9 collection and 1099 filing processes, including real-time TIN verification. This will enable marketplaces, freelancer tools, fintechs and others paying gross income to meet tax filing requirements with an even lighter lift. For our customers this means more time to focus on product development, and less time worrying about evolving, byzantine requirements from the IRS and state tax agencies.
Satisfy State and Federal Compliance Requirements with a Single Integration
For our customers, we understand that forms W-9 and 1099 are a necessary cost of doing business. To paraphrase their feedback: we know we have to do this, so help us do this as fast as possible so we can get back to our actual business. In response, our first Drop-In Components address W-9 collection and 1099 issuance pain points.
As background, firms that pay another entity in a non-employer manner must collect a W-9 or equivalent. The primary purpose of this form is to obtain a correct taxpayer ID (social security number (SSN), employer identification number (EIN), etc.) along with certifications required to avoid backup withholding. The IRS requires that the paying firm keep a record of the W-9 for four years; a firm does not actually submit a W-9 to the IRS.
To make this collection as painless as possible, Abound offers an out-of-the-box W-9 substitute form that captures all requisite information.
As with all Abound products, the Drop-in Components follow best security practices for handling sensitive PII. Using our Tax Profile Drop-In Component, customers can safely transmit PII data on the client-side, bypassing their servers entirely.
The Tax Profile Drop-in Component will also display any information already on the user record as a default.
Seamless 1099 Filing and Issuance
W-9 collection is a first step in the 1099 filing and issuance process. Abound stores the W-9 user (payee) information to not only meet IRS guidelines but also to fulfill 1099 filing requirements at both the federal and state level, where appropriate. That means once we’ve collected a user’s data, all that remains is to do is supplement with earnings data.
Once filed, customers can use our Tax Documents Drop-In to enable easy retrieval of the W-9, 1099 and other tax documents within one’s user experience.
The Tax Documents Drop-In can function as an end user’s central place for easily retrieving all tax documents provided by Abound, forms such as the Schedule-C, 1040-ES and other tax payment vouchers.
Be Compliant without Sacrificing the Look and Feel of Your Brand
As a starting principle for our Drop-In Components, we ensured that customers could match the look and feel of their brand. Our style variables are organized into three primary sections: text, shape and color.
Additionally, there are component-specific sections, like for a button, that enable explicit styling. Furthermore, our design system spans across Web, iOS and Android in order to promote consistency throughout one’s UX/UI.
“Given the drastic new changes to the 1099 reporting laws, Abound was an easy choice. Their functionality lets us concentrate on our core product and taking care of the families in our marketplace.” -Dori Graff, Kidizen's CEO
Kidizen, a marketplace for kids’ gently used new fashion and essentials, is using Abound’s Drop-in Components for their W-9 collection and 1099 filing. With this integration Kidizen can quickly check off what would otherwise be a compliance onus and continue focusing on the communities they serve.
How to Get Started
What’s next? While we launched with only W-9 and 1099 capabilities, we’ll continue releasing Drop-In Components that match our entire API. Stay tuned for updates.