Tax compliance is a critical aspect of operating in the gig economy, where independent contractors and freelancers provide services through digital marketplaces. To address the complex tax requirements faced by these workers and the platforms they operate on, tax compliance solution providers TaxBit and Taina Technology have joined forces to offer a comprehensive solution.
The partnership between TaxBit and Taina Technology aims to assist digital marketplaces in managing their onboarding and reporting needs for gig workers. This new solution is designed to help these platforms navigate the evolving global regulatory landscape, ensuring compliance with tax laws and regulations in the United States and other countries.
One of the key features of this collaboration is the division of responsibilities between the two companies. Taina Technology will focus on data collection, while TaxBit will handle tax computations for income and eligibility, as well as streamline the management of forms and any issues related to B-Notices. By combining their expertise in these areas, the partnership aims to enhance the efficiency of enterprises in onboarding and reporting processes.
The timing of this partnership is crucial, given the ongoing changes in the regulatory environment. For instance, in the U.S., the Internal Revenue Service (IRS) has introduced new reporting thresholds for 1099-K forms, requiring gig workers to report income over $5,000 in 2024 and over $600 in 2025. This shift underscores the importance of having a robust tax compliance solution in place to adapt to such regulatory changes.
Sarah Cooper, Chief Revenue Officer at Taina Technology, emphasized the significance of the partnership in providing end-to-end tax compliance solutions that align with the evolving regulatory landscape. Similarly, Erin Fennimore, Vice President of Tax Solutions at TaxBit, highlighted the potential of the partnership to redefine tax compliance for the gig economy and digital platforms.
The challenges posed by regulatory changes are not unique to the gig economy. According to Kevin Akeroyd, CEO at compliance technology provider Sovos, there are over 14,000 regulatory changes monthly across more than 19,000 tax jurisdictions. These changes can have significant implications for businesses, including increased risks, costs, and a lack of insights.
In response to these challenges, Akeroyd emphasized the importance of leveraging technology and data to address compliance issues effectively. By adopting the right technology solutions, businesses can mitigate risks, reduce costs, and gain valuable insights into their tax compliance obligations.
The collaboration between TaxBit and Taina Technology reflects a proactive approach to addressing tax compliance challenges in the gig economy. By offering a comprehensive solution that combines data collection, tax computations, and streamlined reporting processes, the partnership aims to empower digital marketplaces and gig workers to navigate the complex regulatory landscape with confidence.
