Official Payments Corp. to Process Employer Payroll Tax Payments for State of California
September 06 2005 - 8:46AM
Business Wire
Strategically Significant Expansion Opens OPC's Second Largest
Market Opportunity; More States Offering Electronic Business Tax
Payment Options through OPC Official Payments Corp.(R) (OPC), a
wholly owned subsidiary of Tier Technologies, Inc. (Nasdaq: TIER),
today announced a major expansion of its services in the state of
California to process electronic employer payroll tax deposits,
which includes unemployment insurance, disability insurance, and
withholding taxes. This service is an alternate method of payment
to the paper DE88, Payroll Tax Deposit coupon, made to the
California Employment Development Department (EDD). Since 1999,
Official Payments has processed a variety of business and
individual electronic tax payments for the California Board of
Equalization, Department of Transportation, Franchise Tax Board and
the EDD. With this expansion, currently expected to begin early in
calendar year 2006, California businesses will have the fast,
convenient and secure new way of making payroll tax deposit (DE88)
payments to the EDD with a VISA(R), American Express(R),
Discover(R) or MasterCard(R) by visiting www.officialpayments.com,
or by calling 1-800-2PAY-TAX(SM). The EDD works with over one
million California employers to collect payroll taxes and
employment records for more than 17 million California workers. The
EDD also offers a wide variety of services to millions of
Californians under the State's Job Service, Unemployment Insurance,
Disability Insurance, Workforce Investment, and Labor Market
Information programs. "We're very pleased to expand our
relationship with the EDD to provide our secure and reliable
electronic payment processing services for the benefit of
California employers," said James R. Weaver, Tier's Chief Executive
Officer. "Official Payments has been given the opportunity to
support approximately $27 billion in employer tax payments as
reported in EDD's last fiscal year. This is clearly a strategically
significant expansion. The potential market size makes EDD OPC's
second largest market opportunity in relation to our federal tax
payment processing work." Weaver continued, "This expansion is
indicative of a growing trend of state agencies to make electronic
payment options available to businesses. Official Payments
currently processes electronic business tax and fee payments made
with debit and credit cards for 19 states and the District of
Columbia. Our expectation is that this positive trend will persist
as U.S. businesses and consumer payment preferences continue the
shift to paperless options." Official Payments provides electronic
payment services for the Internal Revenue Service, 25 states, the
District of Columbia and more than 1,800 local government clients
nationwide. Official Payments' principal business is processing
electronic payments on behalf of government entities via its Web
site, www.officialpayments.com, and its toll-free telephone number,
1-800-2PAY-TAX(SM). Official Payments charges citizens a
convenience fee for the service. Citizens using credit or debit
cards with bonus rewards programs may, depending on their card's
program, earn reward points, airline frequent flyer miles or cash
back for paying their taxes and fees. About Tier Tier is a leading
provider of transaction processing and packaged software and
systems integration services for public sector clients. We combine
our understanding of enterprise-wide systems with domain knowledge
enabling our clients to rapidly channel emerging technologies into
their operations. We focus on sectors that we believe are driven by
forces that make demand for our services less discretionary and are
likely to provide us with recurring long-term revenue streams. More
information about the Company is available at www.Tier.com.
Statements made in this press release that are not historical facts
are forward-looking statements that are made pursuant to the safe
harbor provisions of the Securities Litigation Reform Act of 1995.
The Company undertakes no obligation to update any such forward
looking statements. Each of these statements is made as of the date
hereof based only on current information and expectations that are
inherently subject to change and involve a number of risks and
uncertainties. Actual events or results may differ materially from
those projected in any of such statements due to various factors,
including but not limited to failure by end consumers to make
payments with credit or debit cards or electronic checks through
Official Payments Corporation; impact of lower transaction volumes
than anticipated; the potential loss of funding by clients,
including due to government budget shortfalls or revisions to
mandated statutes; the timing, initiation, completion, renewal,
extension or early termination of client projects; the Company's
ability to realize revenues from its business development
opportunities; and unanticipated claims as a result of project
performance, including due to the failure of software providers or
subcontractors to satisfactorily complete engagements. For a
discussion of these and other factors which may cause our actual
events or results to differ from those projected, please refer to
the Company's annual report on Form 10-K for the year ended Sept.
30, 2004, our most recent quarterly report on Form 10-Q for the
quarter ended June 30, 2005, as well as other filings with the SEC.
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