FLS Demonstrates the Only Compliance Continuum, First Web-Native Payroll Tax System, at APA Congress

Options for FLS eDP.COMpliance™ Include Enterprise Software, Outsourcing, Internet ASP

ORLANDO, FLORIDA - 5/17/00 - Federal Liaison Services, Inc. (FLS) today announced the general availability of its new Web-native payroll tax compliance system, 'FLS Employers Direct Pay.COMpliance™ (eDP.COMpliance®), which can be deployed as stand-alone software, as an outsourcing service, or via the Internet in an application service provider (ASP) environment. The launch came at the American Payroll Association's (APA) 18th Annual Congress here, where live demonstrations will be presented to attendees.

The browser-based application is the first full-spectrum product for the tax reporting market. FLS eDP.COMpliance® helps businesses of any size comply with thousands of payroll tax regulations imposed by some 10,000 federal, state and local government agencies. It is the only business-to-business application that can exchange payroll tax compliance data electronically between business taxpayers and the Internal Revenue Service, using the Web.

By automating payroll tax compliance using the Web, employers can minimize the risk of penalties, which can reach 10% of a payroll tax deposit or more. Automating time-intensive, repetitive tasks in payroll compliance helps companies reduce overhead and refocus payroll and tax personnel on more productive corporate goals.

FLS eDP.COMpliance® delivers comprehensive compliance services online for mid-sized and small businesses, as well as to FLS' 400 current Fortune 1000 customers. The software includes features to handle federal, state and local tax deposit calendars, cash management, electronic tax payments, and multiple reporting sites.

The inherent browser-native architecture lets customers choose the implementation strategy that best fits their needs. The application can be deployed via the Internet, or on a corporate intranet or extranet. All payroll tax compliance processes can be decentralized, so multiple users can access the same database in real time from any PC that supports a browser.

"Companies large and small are turning to Web-native solutions to solve their enterprise-wide business problems," said Fran Bartlett, President and CEO of Federal Liaison Services. "As the only full-spectrum solution in payroll tax compliance, FLS eDP.COMpliance is affordable, scalable, and easy to learn and use. Whether they choose stand-alone software, outsourcing or an ASP environment, companies now have maximum control with minimum effort."

The U.S. Department of the Treasury has used FLS Web-native software since July 1998. Nearly 400 federal agencies now make about $40 billion in annual payroll tax payments electronically using the FLS system. Knowledge gained in developing the FEDTAX II system was used to create the commercial version of FLS eDP.COMpliance.

FLS Compliance Outsourcing Services™ will use the system to support its more than 300 outsourcing customers. Chevron Corporation, one of the world's largest integrated petroleum companies, has agreed to beta test the customer access portion of the outsourcing solution. PayMaxx, a leading payroll service bureau that processes $1 billion in payments annually, has beta-tested the product since February. A long-term customer of FLS, PayMaxx intends to use the product to automate its own demanding tax compliance process, which services more than 700 small and mid-sized businesses that operate in all 50 states.

FLS eDP.COMpliance® is currently available as a stand-alone software product for customers who handle payroll tax compliance internally. Businesses of any size can implement the solution on their own hardware, paying only for the level of compliance needed. Customers can deploy the software via the Internet in a secure, decentralized fashion, or run it locally on a single PC.

FLS eDP.COMpliance interfaces with most major payroll applications, and can export data to accounts payable, treasury or general ledger systems. The application also links to FLS EPIC™ (Electronic Payment and Information Courier) services to automatically format and transmit electronic tax payments.

About Federal Liaison Services, Inc. (FLS)

FLS is the leading provider of software solutions and services to employers for government reporting and compliance. FLS solutions automate payroll tax payments and filings, wage garnishment processing, and year-end W-2 and 1099 processing. Applications are Web- and client/server-based, and are scalable to enterprises of all sizes. FLS clients include more than 400 of the Fortune 1000, as well as major government agencies. Visit FLS online at www.flsinc.com or call 972/239-8881; fax 972/239-9540. The company's headquarters are located at 12001 N. Central Expressway, Suite 700, Dallas, TX 75243-3715.