United States Department of Veterans Affairs
United States Department of Veterans Affairs

VA Financial Services Center

Payroll

Our Payroll services are unparalleled. We have processed biweekly payroll for the Department of Veterans Affairs 225,000 plus employees for the past 35 years without ever missing a pay date. We are the largest civilian payroll provider supporting one of the most complex pay groups, Title 38 employees (civilian doctor and nurses.) You’ll find no other Government agency compares to FSC. Our experience not only makes us unique, but the provider of choice. Put our experience and reliability to work for you. Benefits of doing business with us include:
  • Over 35 years of payroll experience
  • Lowest cost in the Federal Government per employee
  • Experienced using Commercial off-the-shelf payroll software package
  • Qualified as a Government cross-service provider to other Government agencies
  • Capable of supporting unique Government payroll requirements (multiple pay plans, titles, and pay basis)
  • Payroll staff knowledgeable of applicable laws, regulations, and tax requirements
  • Accounting department with proven expertise in Treasury reconciliation as a payroll provider
  • Electronic submission of Federally mandated reports
  • Standardized management reporting
  • Electronic payment and reporting capabilities for salary, taxes, and allotments (savings/discretionary)
  • High level of data security
  • A comprehensive disater recovery plan
 
Payroll Services
We offer an array of payroll services which include:
  • Automatic Pay Calculations
    Complex payroll transactions are handled with ease. Payroll automatically calculates taxes, deductions, and benefits for all types of employees and for all titles and pay plans.
  • Direct Deposit/Electronic Forms Transfer (DD/EFT) FSC payroll staff provides fast, convenient, reliable, and confidential direct deposit of payroll checks by automatically sending them to the employee's designated financial institution.
  • Customer Service Help Desk A FSC Payroll Help Desk staffed with highly trained and knowledgeable payroll Subject Matter Experts (SMEs) will handle any questions you may have. You will receive timely responses to your questions on payroll related questions such as employee pay history, check cancellations and reissue, W-2 corrections, check disbursement, etc. We respond to ad hoc queries from employees and internal and external organizations to include other Government agencies and Congress.
  • W-2's W-2 statements are calculated and printed following year end pay run and after all pay adjustments have been made and verified by FSC. We maintain an up-to-date End-of-Year Reconciliation Report each pay period. We perform this biweekly reconciliation to ensure prompt and accurate W-2 processing. FSC also performs all work related to processing corrected W-2's.
  • User Training Upon request, FSC will provide payroll user training to new customers to increase customer knowledge base, streamline operations, and reduce errors.
  • Electronic Data Interchange (EDI) All new customers are required to use DD/EFT in compliance with the Debt Collection Improvement Act. We implemented EDI transactions to support state and local tax reporting requirements for our customers. This ensures quick and reliable transmission of your mandatory tax reporting requirements. Utilizing EDI and DD/EFT have been major factors in decreasing errors and improving payroll processing.
 
FSC Payroll Partnerships
  • Corporate Franchise Data Center (CFD)
    Financial Services Center (FSC) operates its payroll system through a Government-operated Application Service Provider (ASP), the Corporate Franchise Data Center (CFD).  For over 30 years, VA customers have used data housed at the CFD to serve the nation's veterans in information processing. As co-located organizations, FSC and CFD are a successful model of a Federalized Payroll System and ASP capable of supporting the e-Gov Payroll vision.
  • US Treasury FSC works with the US Treasury on the Secure Payment System (SPS) automating the transmission of VA payment vouchers. The system provides the capability to create, certify, and transmit payment schedules electronically. We also are in partnership with Treasury on the Treasury Offset Program (TOP). TOP is a mandatory Government-wide delinquent debt matching payment offset system. It is a means by which VA and all Federal program agencies may recover delinquent debts by receiving offset Federal payments due to the delinquent debtor.
  • Internal Revenue Service (IRS) FSC works with the IRS by utilizing the FEDTAX system to manage the electronic payment of payroll and withholding taxes by Federal agencies. FEDTAX automates the payment of taxes by these agencies and the filing of Form 941, Employer's Quarterly Federal Tax return. We also maintain the tax information needed by IRS to support W-2 reporting.
  • Electronic Trading Partners FSC uses Electronic Data Interchange (EDI) technology in support of multiple applications to exchange data electronically between VA and other business entities. Electronic documents enable data communication between FSC and EDI Trading Partners. FSC offers a variety of electronic commerce (EC) and EDI services including:
    • Data exchange using standard EC/EDI formats
    • EC/EDI enabled application development and support
    • Internet/Intranet-enabled EC/EDI services
  • Local and State Taxing Authorities FSC works closely with local and state taxing authorities to pay, report, and reconcile payroll taxes. State and local tax withholding payments are a result of payroll processing and are reconciled quarterly. FSC reconciles these payments against the W-2 information submitted to each taxing authority at the end of the tax year. Payments are sent to the appropriate taxing authorities on a biweekly, monthly, or quarterly basis depending on their specific requirements.