Abound's Unit integration allows you to associate your Abound UserUser - 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. to a special purpose tax withholding account at Unit.

Setting up your Abound + Unit Integration

Contact your Abound account manager and let her know you'd like to leverage the Abound + Unit integration. They will be able to get you set up in 1-2 days.

Opening a Unit Tax Withholding Account

1. Creating a User

If you have not already done so, create a UserUser - 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. using Abound's POST /users API endpoint, passing all of the required profile information. The response will contain a unique userId. Be sure to store the userId in your database, as it will be used in opening a Unit Tax Withholding account.

2. Open Unit Tax Withholding Account

To open this special purpose tax withholding account, you will need to call Unit's Create Deposit Account API, ensuring that you pass in the following two tags:

{
  "tags": {
    "purpose": "tax",
    "aboundUserId": "REPLACE_WITH_ABOUND_USER_ID"
  }
}

Creating a Tax Withholding

The Abound + Unit integration automates updating your users' tax liability after each tax withholding.

1. Identify Your Withholding Rate

First use Abound's GET /user/{userId}/taxes/{year} API endpoint to retrieve your user's current smartTaxRate. The Smart Tax RateSmart 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. represents the effective tax rate on new income. Although you're not required to use this rate, it will ensure your users are setting aside enough to cover their overall tax liability for that year.

2. Initiate Money Transfer into Your Unit Tax Withholding Account

Once you have determined the amount for your user's tax withholding, it's time to initiate the money transfer. Use Unit's API to originate an ACH or make a book transfer into your Unit Tax Withholding account.

3. Tax Update

Once that money settles, Unit will update your user's taxes automatically. The notice of this update comes in the form of an Abound webhook.

Making a Quarterly Tax Payment

The Abound + Unit integration automates the identity verification, enrollment, and money transfer required to pay a government entity (i.e., the IRS or state authority) and automates updating your users' tax liability after each tax payment.

1. Identify Your Payment Amount

First, you want to calculate the amount of the tax payment. Use the Abound GET user/{userId}/taxes/{year} API endpoint and your user's current balance in their Unit Tax Withholding account to calculate the amount your user should pay on the next quarterly tax payment deadline.

2. Grab Your User's Abound Payment Methods

Second, you want to find the Abound paymentMethodId assigned to your Unit Tax Withholding account. To do this, use the Abound GET /user/{userId}/paymentMethods API endpoint and locate the paymentMethodId for the payment method with a displayName equal to "Unit Tax Withholding".

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Note: the payment method associated with your Unit Tax Withholding account will only show up after the first successful tax withholding.

3. Initiating the Tax Payment

Using the Abound POST /user/{userId}/taxPayment API endpoint, create a new tax payment with the amount from step 1 and the paymentMethodId from step 2.

Once initiated, changes in the tax payment's status will be communicated via Abound webhooks. You may also directly look up this payment using the Abound GET /user/{userId}/taxPayment/{taxPaymentId} API endpoint.

4. Tax Update

Important updates about your tax payments will be communicated via Abound webhooks.


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