Bulk Transmissions (XML and Web Services)

Federal/State Employment Taxes (FSET) Program

Several states, the Internal Revenue Service, and software vendors developed FSET. The program provides a standardized method for making tax payments and reporting employment tax and wage information in eXtensible Markup Language (XML). FSET allows you to transmit your Quarterly Contribution Return and Report of Wages (DE 9), Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C), Report of New Employee(s) (DE 34), Payroll Tax Deposit (DE 88), and Report of Independent Contractor(s) (DE 542) application-to-application using Web services. Payroll service providers may submit Data Exchange and Enrollment files to retrieve their clients’ tax rates, verify their clients’ EDD employer account numbers, check their clients’ EFT mandatory status and notify EDD when they acquire or no longer represent clients.

The Federal/State Employment Taxes program is open to:

  • Employers who want to either develop their own software, or use the services of a participating payroll service provider or transmitter.
  • Software developers, transmitters and payroll service providers that act as reporting agents.

Employers who are required to file their federal wage reports electronically (those with 250 or more employees) must also file their DE 9C electronically. Filing with FSET fulfills this requirement.

For employers who wish to use an existing FSET software product, please see the list of approved FSET providers.

Developing Your Own FSET Program

If you are developing your own FSET program, below is everything you need to get started:

  • If you are creating your own FSET program as a transmitter (employer, payroll agent or software developer), download the schemas and follow the instructions in the Information Guide.
  • To register, simply establish your username and password on e-Services for Business and complete an enrollment form. You only need to register one set of credentials to use the FSET program.
  • After you register, you will be provided with information for your certification testing. Once you successfully complete your certification testing, we will notify you of your acceptance in our program. Payroll agents and/or software developers can complete a Website Link Agreement to be added to the list of approved FSET providers on our Web site.