As the gig economy continues to mature, the friction between fast payments and complex regulatory requirements remains one of the greatest operational hurdles for modern platforms. On April 7, 2026, Branch announced a significant expansion of its Embedded 1099 Payouts solution, now offering a fully integrated, end-to-end tax filing capability.
This launch transforms Branch from a high-speed payment processor into a comprehensive compliance partner. By unifying contractor onboarding, real-time earnings tracking, and federal/state tax filing within a single system, Branch enables platforms to eliminate fragmented, manual workflows that often lead to audit risks and operational bottlenecks.
Navigating the 2026 tax landscape
The expansion arrives at a critical moment for the 1099 workforce. Under the One Big Beautiful Bill Act (OBBBA), 2026 marks the first year the federal reporting threshold for Form 1099-NEC and 1099-MISC has increased from $600 to $2,000.
While this change reduces the volume of filings for some, the complexity of state-level reporting and the need for accurate Tax Identification Number (TIN) verification remain at an all-time high.
For platforms managing thousands of independent contractors, the risk of misclassification and the administrative burden of tracking income across multiple states can be overwhelming. Branch’s new solution addresses these hidden costs by automating the most labor-intensive aspects of contractor management.
The anatomy of a unified 1099 system
The Branch Embedded 1099 solution is designed to act as a single source of truth for contractor income. Instead of relying on multiple disconnected tools, platforms can manage the entire lifecycle through one API-driven system:
- Automated onboarding: Digital W-9 collection with instant IRS TIN verification
- Real-time tracking: Automatic tracking of payouts, including external income data integration
- Seamless filing: Submission of 1099 forms to federal and state authorities, with delivery to contractors
- Risk mitigation: Automated rules preventing payouts to unverified contractors
Case study: GigSmart’s 2 million worker scale
GigSmart is the first major platform to adopt Branch’s end-to-end filing suite. Managing a network of over 2 million workers, GigSmart requires infrastructure that can scale without compromising user experience.
“At GigSmart, we’re building a platform that works seamlessly for over 2 million workers and the businesses that rely on them,” said Mitch Catino, Founder & COO at GigSmart. “Fast, reliable payouts and tools for workers to manage their money are essential to that experience.”
By integrating Branch’s tax capabilities, GigSmart ensures contractors receive accurate tax forms on time, reducing support overhead and improving retention.
The strategic vision for workforce infrastructure
For Atif Siddiqi, founder and CEO of Branch, expanding into tax filing is a natural evolution:
“Platforms have long had to balance fast payments with compliance complexity. This solution delivers both in a single scalable system built for contractor-driven businesses.”
As fintech continues to embed deeper into operational workflows, platforms that combine payments with compliance are becoming the new standard.
About Branch
Branch provides financial infrastructure for modern workforces. From wages and tips to contractor payouts, companies use Branch to manage the full lifecycle of earnings. By embedding financial tools directly into business systems, Branch reduces administrative overhead, accelerates payments, and supports compliance.
About GigSmart
GigSmart is a Denver-based workforce platform connecting businesses with over 2 million workers across industries such as hospitality, logistics, and construction. Its tools enable companies to manage scheduling, hiring, and on-demand labor efficiently.
