What is the FSET (Federal/State Employment Taxes) program?
The FSET program was developed by the Internal Revenue Service (IRS), several states, and software vendors to establish a standardized format to electronically submit both federal and state employment tax information through the Internet. The program uses Extensible Markup Language (XML) and schemas (record layouts) that were developed for this purpose. The returns are transmitted to EDD using Web services. The complete background on FSET is contained in the Federal/State Employment Taxes (FSET) Implementation Guide (DE 545). The guide provides information, direction, and examples required for enrollment, testing, and implementation. The Employment Development Department’s (EDD) FSET program currently accepts the electronic filing of the Quarterly Wage and Withholding Report (DE 6) and Annual Reconciliation Statement (DE 7). FSET will be expanded in the future to include the Report of New Employee(s) (DE 34) and Report of Independent Contractor(s) (DE 542).