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ACH Federal Helps Credit Union Lasso in Business Tax Formatting Issues

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By Roy W. Urrico

Screen Shot 2013-12-16 at 4.12.54 PMAs we head into tax season it is worth noting that numerous businesses initiate tax payments electronically through financial institution provided services. Credit unions, banks and non-banks (operating as service providers) offer commercial taxpayers an assortment of ACH credit payment initiation services. ACH Federal, which provides e-Payments processing, allows credit unions to reach out to businesses in their respective communities. Recently, ACH Federal announced the implementation of its PaymentsHQ processing platform by $1.9 billion Travis Credit Union, based in Vacaville, California. With this installation TCU now also incorporates the latest PaymentsHQ enhancement that streamlines and simplifies the complicated federal and state tax addenda format required by NACHA.

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“The significance of the federal and state tax addenda enhancement is that it was developed due to a customer need and turned into a technology that created a solution for many other financial institutions and direct customers as well,” said Kurt Schusterman, president of ACH Federal.

The tax addenda format was developed and tailored specifically for Travis Credit Union, according to Schusterman. “TCU expressed the need/challenge and ACH Federal turned that into technology that provided an effective solution. TCU now has the ability to remit payment information for business and payroll taxes with ease.” Schusterman points out that the federally required tables are loaded directly into the PaymentsHQ processing system so that selecting the appropriate categories and entering ID’s is all that needs to be completed before the system builds out the required ANSI addenda for the transaction.

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