Payout service provider Hyperwallet is targeting the on-demand economy, where gig workers can struggle to get paid and their employers struggle to remain compliant.
A new solution, announced today (Oct. 5), is part of Hyperwallet’s efforts to solve both sides of the freelance worker payout problem. The firm is rolling out its Tax Compliance Services initiative, which aims to streamline the tax filing process for companies with 1099-classified employees.
The firm’s payout platform will now integrate tax form collection, 1099 form digital distribution and other tax services catered to companies that operate in the gig economy.
“Remaining compliant with the tax requirements of a 1099 workforce is no small task,” said Hyperwallet CEO Brent Warrington in a statement. “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.”
The initiative comes with the introduction of a Hyperwallet tax widget that can integrate into the payout platform for corporate users. The feature can enable employers to require their 1099 workers to complete necessary tax forms before payout or can trigger a form requirement once a payout threshold is reached for employees, the company explained. Data is verified against the IRS database, it said.
Hyperwallet’s tax solutions for the on-demand economy follow earlier initiatives by the company to provide solutions for this space. In a recent interview with Karen Webster, Hyperwallet VP of Strategy and Business Development Tomas Likar explained that one of the top priorities of the gig economy is for employers to give their employees choice in how to get paid.
Last month, the company announced plans to introduce new methods for developers to implement its payout tools, offering them a one-click Go Live capability to accelerate the speed at which developers create working payment solutions.