Stripe and Intuit have formed a strategic partnership where Intuit is offering a new integration for marketplaces and Stripe will provide payment processing for the same capability. The objective is to leverage Intuit’s new “QuickBooks Online Self-Employed” software product to automate tax reporting for on-demand workers which includes freelance drivers, delivery personnel, independent contractors, etc. 43% of the US workforce will eventually operate as self-employed businesses by 2020, according to research conducted by Intuit and Emergent Research.
Stripe and Intuit are now working together to help such a workforce manage its finances. With the new integration, on-demand marketplaces get the option of moving their income data flows securely into QuickBooks Online Self-Employed. This would help users of those marketplaces keep track of tax obligations, deductions, business expenses, etc. The QuickBooks product has helped businesses track over $50 million in business expenses, save money on taxes and manage finances in a better manner.
The integrated system is now available for all marketplaces using the Stripe platform to pay independent contractors. Thanks to this partnership, independent contractors and others working on on-demand platforms will receive:
- Free version of the QuickBooks Online Self-Employed software (for tracking income, expenses, etc.)
- Ability to send data from QuickBooks Online Self-Employed into “TurboTax Online” (for handling tax returns)
- Option of linking bank and credit card accounts to QuickBooks Online Self-Employed
Alex Chriss, VP and GM of Self-Employed Solutions at Intuit, said in an official press release: “While the expanding on-demand economy is making it easier for millions of individuals to find work, it’s also exposing new hardships in the form of tracking net income, managing individual expenses, and paying quarterly taxes. The integration between QuickBooks Online Self-Employed and Stripe enables on-demand marketplaces to provide a tremendous and free benefit to their independent contractors to help ease this tax complexity. Marketplaces are focused on creating efficient interactions for consumers by leveraging fleets of independent contractors – now they can offer these contractors a product that is laser focused on improving their financial lives.”
Cristina Cordova, head of strategic partnerships at Stripe, said in an official press release: “We’re thrilled to see Intuit build such a powerful tool on top of the Stripe platform. Marketplaces on Stripe can integrate in minutes, and unlock a beneficial service to their contractors without any additional hassle or involvement on their end.”
The Stripe integration is being offered for free to workers who receive income from companies that use it for payments. Example of such companies are Lyft, Sidecar, Summon, Flywheel, Handy, Homejoy, Washio, etc. Since these companies are hiring workers as contractors, they are not able to offer tax advice or benefits. By tracking income directly via QuickBooks, things now become easier for these workers from a personal financial management perspective.