Agency Profile
The Financial Management Service (FMS), one of 12 bureaus of the Treasury Department, is the U.S. Government's cash manager.
- Disburses in excess of $1 trillion annually in 860 million non-defense payments, which includes government payroll
- Manages the world's largest collections system, gathering $1.5 trillion annually in Federal revenues
- Must handle payroll tax collection and reporting for all U.S. Government employees
The Challenges
Inadequate legacy system. In the early 1990's, FMS implemented a system to automate the payment of taxes by Federal agencies and the filing of Form 941. Known as FEDTAX, this system was running on legacy hardware, was inadequate to handle increasing volumes, and was not Y2K-compliant.
Diverse agencies to be supported. The Treasury Department needed to create a new, state-of-the-art tax automation solution that could handle the diverse tax needs of hundreds of federal agencies.
Complex requirements. In order to transition agencies and users as quickly as possible, the system must utilize state-of-the-art technology, have built-in tax compliance capability, and be easy to use. It must also be extremely secure, since it would handle billions of dollars of tax payments annually.
The Solution
Sage Compliance Services, under contract to CashTax (First Data Corp.) and Bank of America, developed FEDTAX II, the world's first web-native application to automate the payment of payroll tax payments and reports. The system was implemented in July 1998 to coincide with the beginning of a new quarterly filing period.
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