Global payments management provider Tipalti has integrated an intelligent Form W-8 collection solution into its SaaS-based platform, helping companies automate the accounts payable process.

With the integration, users can pay suppliers who are nonresidents, foreign alien or entities while achieving W-8 tax form compliance. The new W-8 capability was reviewed and found to meet Internal Revenue Service standards by KPMG.

Tipalti’s offering streamlines the W-8 process, which can require different forms W-8 with complex requirements, providing a web-based assistant that helps the supplier with form selection from more than eight choices, including Forms W-9, W-8BEN, W-8BEN-E, W-8EXP, W-8IMY, W-8ECI, W-4 and Form 8233. After selection, form data like SSN and EIN numbers are validated against the IRS data base and the chosen tax form and other ID information is collected digitally. The solution then calculates payee withholding requirements based on the income types of payments made and generates a summary of withholding instructions for the payer.

Instructions are included in Tipalti’s Form 1099 and 1042-S preparation reports, are automatically deducted from the payment amount for annual reporting, and, because of the solution’s cloud-based platform, future filing requirement changes will be automatically updated.

“Today’s Form W-8 collection and withholding requirements are complicated and confusing, and make the already-difficult process of managing and paying overseas suppliers even more challenging,”  stated Chen Amit, co-founder and CEO of Tipalti. “Our new W-8 capability dramatically simplifies the process of managing and paying overseas suppliers, while ensuring compliance with the constantly changing tax and regulatory requirements.”

The capability is fully integrated in Tipalti’s global supplier payment platform, which manages supplier payment workflow from payee onboarding through tax and regulatory compliance, global supplier remittance, payee communications and Form 1099 and 1042-S tax preparation, and payment reconciliation reporting. 

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