Questions for Tax Services for HQ AFSVAF41999-12-I-7004.pdf

QUESTIONS FOR RFQ F41999-12-I-7004

OBTAINING TAX SERVICES FOR AIR FORCE SERVICES

AGENCY (AFSVA)

1. Please describe how your current payroll processes are handled.

a. Who is currently providing your payroll services? Are the services provided in-house or outsourced to a third-party entity?

Answer: Payroll & Tax Services are currently handled in-house.

b. If payroll is currently processed in-house, are you seeking to outsource all or a portion of your payroll functions? Please describe.

Answer: As stated in the introduction of the solicited RFI (F41999-12-

I-7004). We are seeking information and pricing to obtain the tax services mentioned in the RFI. No other services are required at this time.

c. If payroll is currently outsourced, please describe the extent of the outsourcing of payroll functions and whether the RFI includes the review of one or more vendors, their processes and systems?

Answer: Not applicable

2. Please confirm that the purpose of the RFI is to obtain assistance with the completion of federal and state income tax reporting, and federal employment tax reporting.

Answer: Please see RFI (F41999-12-I-7004) for explanation of requirements.

a. Do you need assistance with tax deposits/remittances as well?

Answer: Please see the “Requirements” section of RFI (F41999-12-

I-7004) for explanation of payment/remittance requirements.

b. Please provide information on other payroll, 1099 or 1042-S services that would be outsourced.

Answer: Please see RFI (F41999-12-I-7004) for explanation of requirements.

3. Please describe the qualified plans that require Forms 1099-R filings.

Answer: Retirement plan in-house, 401K.

4. Please describe the non-qualified plans that require Form 1099-MISC and/or Form W-2 filings.

5. Have there been any issues identified with your current payroll processes and procedures?

Answer: Only in relation to tax preparation and submission for Federal, State & Local.

a. If so, please provide detail about those issues, whether they are still outstanding or have been remediated, and how did you identify the problem?

Answer: Outstanding issues are in regards to tax filings in state/local jurisdictions not the tax payments, with the exception of State of

Pennsylvania. Issues are uncovered during the end of year reconciliation process. Currently research/resolving prior year outstanding unpaid tax liabilities in the state/local jurisdictions.

b. Do you have any other specific concerns?

Answer: Prior to 2011 (PA ACT 32) State of Pennsylvania – local jurisdiction payments mailed to state tax office versus individual localities. Difficulties in identifying correct tax office to make payments and resolved outstanding tax discrepancies.

6. Please describe your current quality control procedures.

a. What are your current processes and procedures for gathering, compilation and documentation of your payroll functions?

Answer: As stated in the introduction of the solicited RFI (F41999-

12-I-7004), we are seeking information and pricing to obtain the tax services mentioned in the RFI. No other services are required at this time.

b. What systems do you use to gather and compile payroll information?

Answer: As stated in the “Requirements” section of the RFI, all data will be provided to the vendor from Oracle E-business Suite 12i

(Commercial version).

7. Please confirm the 44 states in which you have withholding and filing requirements. Would Puerto Rico also be included in scope for the payroll review?

Answer: See attached spreadsheet

8. What local jurisdictions require filings and/or tax remittances?

Answer: Local jurisdictions include: State of Pennsylvania, Ohio, Indiana, New York, Missouri and Delaware

9. As part of the process, we believe a risk assessment of the current payroll functions would be beneficial.

Answer: We do not concur at this time. As stated in the introduction of the solicited RFI (F41999-12-I-7004), we are seeking information and pricing to obtain the tax services mentioned in the RFI. No other services are required at this time.

a. Please describe the number and type of compensation and other benefit plans (not discussed above) that would need to be reviewed or considered that feed into the payroll process?

b. Please provide a recent history of US Federal and State audit activity, if any.

Answer: Currently undergoing IRS audit for 2009 payroll tax liability.

10. Are there any other goals you would like to accomplish from the RFI that have not been mentioned? In the event you decide to outsource your payroll function, how do you envision the process operating in the future?

Answer: All requirements and goals are stated in the RFI (F41999-12-I-

7004). No other requirements other than tax services are needed at this time.