Similar to the IRS Modernized e-File (MeF) program, the FSET (Federal/State Employment Taxes) solution is a software application that provides a common framework, complies with IRS E-commerce Requirements Standardization, is secure and easy to use, and reduces the expense and complexity of filing, paying, and processing employment taxes.
The FSET program reduces the filing burden on businesses, including payroll providers, by simplifying the process and eliminating multiple redundant filings. FSET program standards facilitate the development of commercial software applications for single point electronic transmission of employer tax and wage reports to satisfy a business’s state reporting obligations.
RSI’s software and experience complement agencies looking to streamline their workflows and better integrate with FSET. Our Integrated Tax Solution, Revenue Premier, includes a state gateway component that supports FSET and can be implemented alongside any existing tax system.
RSI’s solution and software are fully compliant with IRS Publication 1075 and NIST security publications and directives. Data that is electronically submitted and received follows the standard format established by the IRS Standards Committee (formerly TIGERS).
Gateway plug-in architecture allows states to extend their solution to address future business needs without needing to modify the core application.
Accepting both withholding and unemployment insurance information in the combined filing enables agencies to develop compliance programs and achieve improved fraud detection and prevention, using wage to withholding comparisons.
The simplification of the payment process allows one payment to be accurately distributed to appropriate agencies based on filing information.
Complying with employment taxes often requires the completion and filing of numerous and often redundant forms with multiple agencies, including the Internal Revenue Service, the Social Security Administration, most State Revenue and Labor agencies, and even some Cities. This replication increases the cost of doing business and adds to the likelihood of taxpayer errors.
In addition to the burden on taxpayers, State and Local agencies are responsible for employment tax processing, depositing of payments, and enforcing compliance. Agencies must capture and process large volumes of employer reports and payments in both paper and various electronic formats, as well as determine compliance with new-hire reporting, unemployment, and withholding thresholds. On top of this, agencies also have to adjust and adapt systems and processes to new legislative changes.
Agencies need a secure, standardized process that reduces or eliminates redundancies for both taxpayers and agencies. It should have the ability to meet the unique obligations and requirements of varying jurisdictions, ensure accurate reporting, and support downstream compliance efforts. In essence, it needs to simplify submission of state and federal employment reports and payments.
Any functional FSET software solution must be secure, reliable, and solve the real-world problems that employment tax reporting and processing pose. Having implemented tax solutions for multiple federal and state tax agencies, RSI has the experience and expertise needed to be a trusted FSET solution provider. Our active participation with the IRS Standards Committee (formerly TIGERS) means that we are intimately familiar with FSET guidelines and have a proven track record of successful delivery on similar engagements.
That’s why, our flagship product, Revenue Premier, integrates with FSET to make filing, paying, and reporting easier. Using a generic web services gateway, businesses and payroll providers can use FSET to securely and efficiently file and pay employment taxes and unemployment insurance in a single submission. Combined with the expert support and consultation provided by RSI’s team, we ensure that your agency is set up with everything it needs to stay compliant and optimize its operations.
Learn More About Revenue Premier
Discover how Revenue Premier can make filing and paying Federal/State Employment Taxes more streamlined. Reach out to learn more or request a product walkthrough based on your unique needs.