When implementing the features of Digital W-9/W-8, two options are available:
- REST API.
This section provides an overview of these solutions, their advantages and disadvantages, and recommendations on which one to use based on your specific needs.
The SDK incorporates a series of questions, screens, certifications, and up-to-date legal language that align with all IRS and legal requirements. It is an all-encompassing tool that handles various scenarios, including the most complex edge cases. Using its drag-and-drop functionality, you can integrate the SDK into your applications and leverage its extensive capabilities without worrying about the intricacies of tax regulations. The SDK streamlines the process by guiding users through every step, ensuring compliance and accuracy while saving time and effort.
The SDK offers 2 modes based on your requirements:
- Collection Mode: Users provide and certify their information. The system allows them to skip specific screens if pre-existing information is available.
- Certification Mode: Users manually certify all their information on the "Certification" screen. With this option, you have the ability to add a custom button that redirects users to a different page.
The SDK supports four starting points: W-9, W-8BEN, W-8BEN-E, and UNDETERMINED. The following information will help you choose which one to use:
- W-9: You need to know that the account in question belongs to a US individual/entity.
- W-8BEN: The account must be owned by a foreign individual.
- W-8BEN-E: The account must belong to a foreign entity.
- UNDETERMINED: If you're uncertain about the account type, you can select the UNDETERMINED option, which will determine the account type based on a series of questions.
The API serves as the foundation of the product and is utilized by both the SDK and TaxBit Dashboard (TBD). Unlike the SDK, the API does not provide user guidance to ensure the accuracy of information. It requires developers to provide correct and complete information right from the start. This solution facilitates the processing and validation of data, allowing developers to integrate the various endpoints into their existing systems, applications, and workflows.
With the API solution, collecting all the required information from users either during the onboarding process or through your own user interface (UI) is essential. Additionally, developers must handle the implementation of certifications and legal language independently to ensure compliance with IRS and legal requirements. This level of customization provides greater flexibility but requires meticulous attention to detail to meet all the necessary criteria and maintain regulatory compliance.
The API enables the following functionalities:
- Transmission of Tax Documentation data to and from TaxBit.
- Retrieval of Tax Documentation submission summaries.
- Generation and downloading of PDF tax documents.
Like the SDK, the API incorporates the core validations to maintain the accuracy and consistency of the processed data across different implementation solutions.
The API supports three document types: W-9, W-8BEN, and W-8BEN-E. To submit with these document types, you must ensure that the form data corresponds to the correct document type and that you have all the necessary information formatted correctly.
Updated 10 months ago