| (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.
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