Common Terms

TermDefinition
PayerAn entity that makes payments for: services performed by independent contractors (1099-NEC), interest on a business debt (1099-INT), and payment card transactions settled on behalf of merchants (1099-K).
Payment MethodA bank account (checking or savings) from which your user's withholding transfers are pulled, or withdrawal transfers are returned. Each Payment Method has a unique paymentMethodId.
Quarterly Tax PaymentA non-reversible IRS tax payment that Abound submits. Quarterly tax payments are initiated by calling the Tax Payments API endpoint. The IRS calls this estimated taxes.
Smart Tax RateA dynamically adjusting percentage rate based upon the user's outstanding tax liability. Use this to find the taxes owed on specific incomes (e.g., a paycheck, invoice payment, or a collection of incomes) that have not been withheld from yet.
Tax CalculationsA product that calculates the federal and state taxes owed on your user’s 1099 income earnings.
Tax DocumentsA product that returns a series of PDF reports such as Quarterly Tax Payment 1040-ES Vouchers and an Annual Profit-Loss Statement.
UserA single end-user of your application. Each User has a unique userId, which should be stored in your database and used to make API requests on behalf of this individual.

Questions? Want to see something else defined? Contact: [email protected].