Tipalti launches W-8 solution

The solution helps US companies automate the accounts payable (AP) process by both paying suppliers who are nonresidents, foreign alien or entities while ensuring W-8 tax form compliance. KPMG has reviewed and concluded that this new W-8 functionality meets the standards as outlined by the Internal Revenue Service (IRS).

The new Tipalti offering streamlines the entire Form W-8 collection process with a web-based assistant that aids the supplier with form selection from over eight different tax forms including Forms W-9, W-8BEN, W-8BEN-E, W-8EXP, W-8IMY, W-8ECI, W-4 and Form 8233. The solution then validates form data including SSN and EIN numbers against the IRS database, collects the chosen tax form and other ID information digitally, calculates payee withholding requirements based on the income types of payments made, and then generates a summary of withholding instructions for the payer. These instructions are included in Tipalti’s Form 1099 and 1042-S preparation reports and are automatically deducted from the payment amount to assist with annual tax reporting. Additionally, because of Tipalti’s cloud-based platform, future changes to filing requirements by the US government will be automatically updated without any technical intervention from payers. 

This enhanced W-8 functionality comes fully integrated with Tipalti’s global supplier payment platform. The unified cloud-based system helps accounts payable organizations manage the entire supplier payment workflow, from payee onboarding through to tax and regulatory compliance, supplier payment remittance across the world, payee communications, through to Form 1099 / 1042-S tax preparation and payment reconciliation reporting.

Tipalti is a payment management platform that automates all phases of the global supplier payment management lifecycle in one unified SaaS solution. Companies like GoDaddy, Chartboost, Disqus, PulsePoint, TouchOfModern and Visually already use Tipalti.