NPRC Studies & Recommendations
Electronic Filing Systems for Withholding and Employment Taxes: Recommendations and Considerations
State agencies are modernizing legacy filing systems. These next-generation systems create opportunities to dramatically increase efficiency by leveraging technology to support e-filing adoption, improve data quality, and reduce administrative costs for agencies, employers, and service providers alike. Below are 10 recommendations from the National Payroll Reporting Consortium, which represents 23 member organizations that provide payroll and tax reporting services to nearly 2 million employers, covering over one-third of the private sector workforce.
For more than 40 years, NPRC members have supported tax administration and wage reporting systems at the federal level and in every state.
- 1. Early Collaboration in Design Phases
- 2. Establish Appropriate Edits
- 3. Integrate Pre-Filing Validations
- 4. Offer ACH Credit and Debit for Electronic Tax Payments
- 5. Support Bulk Amended Returns
- 6. Adopt Modern APIs and Established Standards
- 7. Streamline Electronic Filing Access
- 8. Implement Electronic Notice Delivery (e-Notice)
- 9. Enhance E-Services Beyond Basic Filing
- 10. Maintain Backup/Contingency Systems