PYMNTS-MonitorEdge-May-2024

TaxBit and Taina Partner on Gig Economy Onboarding, Tax Reporting

tax reporting

Tax compliance solution providers TaxBit and Taina Technology have teamed up to help digital marketplaces with their onboarding and reporting needs related to gig workers.

Designed for users in the United States and other countries, the new solution offered by this partnership is designed to help digital marketplaces navigate the global regulatory landscape, the companies said in a Monday (July 8) press release.

In this partnership, Taina will facilitate data collection, while TaxBit will simplify tax computations for income and eligibility and streamline the management of forms and any issues associated with B-Notices, according to the release.

With these capabilities brought together in a single solution, enterprises can increase their efficiency in everything from onboarding to reporting, the release said.

This solution arrives at a time when the global regulatory landscape is evolving. In the U.S., for example, the Internal Revenue Service (IRS) has implemented new reporting thresholds for 1099-K forms, requiring gig workers to report income over $5,000 in 2024 and over $600 in 2025, per the release.

“Together, our … platforms, shared experiences and resources will enable us to provide end-to-end tax compliance, keeping pace with the evolving regulatory landscape,” Sarah Cooper, chief revenue officer at Taina Technology, said in the release.

Erin Fennimore, vice president of tax solutions at TaxBit, said in the release that the partnership will “redefine tax compliance for the gig economy and digital platforms.”

Compliance changes can be “sudden, relentless and consequential,” Kevin Akeroyd, CEO at compliance technology provider Sovos, wrote in the PYMNTS eBook, “The Implications of Uncertainty.”

There are more than 14,000 regulatory changes monthly covering over 19,000 tax jurisdictions, according to Akeroyd.

“Because of this, three of the biggest challenges facing companies right now are risk, cost and lack of insights,” Akeroyd wrote. “Each of them can be addressed with the right technology and data.”

In the case of the IRS’s new reporting thresholds for 1099-K forms, the implementation was delayed in the past following feedback from taxpayers, tax professionals and payment processors.

The current plans for implementation resulted from efforts to reduce confusion and ensure a smoother transition, the IRS said in a November 2023 press release.

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PYMNTS-MonitorEdge-May-2024