Glossary

Below are common terms and concepts used throughout Abound's documentation.

Term

Definition

Payer

An 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 Method

A 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 Payment

A non-reversible IRS tax payment that Abound submits. Quarterly tax payments are initiated by calling the Tax Payments API endpoint.

Smart Tax Rate

A 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 Calculations

A product that calculates the federal and state taxes owed on your user’s 1099 income earnings.

Tax Documents

A product that returns a series of PDF reports such as Quarterly Tax Payment 1040-ES Vouchers and an Annual Profit-Loss Statement.

User

A 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].


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