26 Tex. Admin. Code § 264.303 - Obtaining and Revoking Federal and State Approval to be a Vendor Fiscal/Employer Agent

(a) An FMSA must apply for and obtain one Federal Employer Identification Number (FEIN) for the sole purpose of filing and depositing federal income tax withholding and employment taxes (i.e., Medicare and Social Security (FICA) and Federal Unemployment Insurance taxes) on behalf of employers it represents as a vendor fiscal/employer agent. The one FEIN must cover all states and programs under which the entity functions as a FMSA.

(b) An FMSA must obtain IRS approval to act as an agent for each employer it represents by:

(1) obtaining, within 30 calendar days after the employer enrolls into the CDS option, a separate FEIN for each employer it represents by completing and submitting an IRS Form SS-4, Application for Employer Identification Number unless the employer uses an existing FEIN for the CDS option;

(2) requesting that the employer, who uses an existing FEIN for the CDS option, inform the FMSA if the FEIN is being used for other purposes;

(3) retaining a copy of an executed IRS Form SS-4 or other documentation provided by the CDS employer who already has an FEIN for each employer on file;

(4) applying for and receiving agent authorization from the IRS by completing and submitting an IRS Form 2678, Employer/Payer Appointment of Agent, within 30 calendar days after the employer enrolls into the CDS option, for each employer it represents; and

(5) retaining a copy of executed IRS Form 2678 for each employer on file.

(c) The FMSA must register as a reporting agent with the Texas Workforce Commission (TWC) for the sole purpose of filing and depositing state unemployment taxes.

(d) The FMSA must revoke the FMSA's IRS and TWC agent status within 30 calendar days after becoming aware that the person no longer qualifies for the program, the employer no longer qualifies to be an employer, the individual transfers to another FMSA, or the individual no longer uses the CDS option.

Notes

26 Tex. Admin. Code § 264.303

Transferred from 40 TAC § 41.303 Texas Register, Volume 49, Number 28, July 12, 2024, TexReg 4433, eff. 9/1/2024