FLS Approved for E-Filing of Employers' Quarterly Tax Returns

Compliance Leader First to Offer Alternative to Expensive EDI Filing of Payroll Tax Data

DALLAS, TEXAS - 1/09/01 - Employers will soon have a new affordable tool for electronic filing of quarterly payroll tax data with the IRS. Federal Liaison Services, Inc. (FLS), the leader in employer compliance automation, is the first tax processor approved by the IRS for non-EDI e-filing of employers' quarterly payroll tax returns.

The new FLS e-filing module exports payroll data as flat ASCII files, which are far cheaper and easier to produce than Electronic Data Interchange (EDI) files. Companies are looking for an alternative to EDI because EDI translation software for payroll tax compliance is very costly to build and maintain.

Companies using the client-server version of the FLS Payroll Tax System™ will receive the new e-filing module with their regular software updates early this year. E-filing using FLS Employer's Direct Pay.COMpliance™ (eDP.COMpliance™) Web-based browser software will be available later in 2001.

"Small and mid-size service bureaus are very interested in using ASCII files for e-filing with the IRS, and we can now offer them a fast, affordable solution," said Fran Bartlett, Founder and President of FLS. FLS Payroll Tax System users include more than 425 of the 1000 largest U.S. corporations.

FLS was the first company to participate in the IRS pilot program to develop and test non-EDI software. Employers register with the IRS to file electronically, and receive a Personal Identification Number (PIN) and password. Payroll tax data is then transmitted by modem, eliminating the need to file a paper return. The IRS wants 80% of the nation's 6 million employers to file all their tax returns electronically by 2007.

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 members of the Fortune 1000, as well as several 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.