A federal Universal Service Fund (FUSF) fee may be applied to your account for certain usage. This article explains the FUSF fee, how it applies, and where to see your charges.
To read more about additional applicable taxes in the United States, see here.
What is the FUSF Fee?
The federal Universal Service Fund (FUSF) is a federal fund that ensures the availability of affordable communications to underserved populations. The Federal Communications Commission (FCC) requires companies providing interconnected VoIP and telecommunications services to retail customers, including businesses and residences, to contribute to the FUSF. The FCC delegates the administration of the FUSF to the Universal Service Administrative Company (USAC). Each quarter, the FCC adopts a “contribution factor” for FUSF support. The contribution factor is a percentage of the total interstate and international end-user telecommunications and Interconnected VoIP revenue that each carrier is responsible for contributing to the FUSF. As permitted by FCC regulations, CallTrackingMetrics has opted to bill the FUSF surcharge as a separate line item to end-user customers. Consistent with such regulations, CallTrackingMetrics only bills FUSF line item charges in an amount equal to the quarterly contribution factor currently in effect multiplied by the invoiced amount subject to the FUSF. This is a permissible pass-through surcharge but is not a tax or charge mandated by the government.
The FCC’s FUSF program aims to preserve and advance universal access to telecommunications and internet services in rural and high cost areas. Specific beneficiaries of the FUSF are low-income residential customers, libraries, and schools as well as consumers and healthcare providers in rural America. Any entity providing telecom and/or VoIP services within the United States must contribute to the fund in addition to federal, state and local regulatory fees and taxes.
You can find more information about the federal Universal Service Fund at: www.fcc.gov/general/universal-service
Why are you passing FUSF fees through to me?
CallTrackingMetrics is registered with the FCC as an Interconnected VoIP provider and is therefore required to contribute a portion of its interstate and international end-user telecommunications and Interconnected VOIP revenue to the FUSF.
Which services are subject to FUSF?
FUSF will be applied to telecom and/or VoIP consumption of interstate, international and toll free minutes at a bifurcation rate of 90% software / 10% IVoIP
Notice: Bifurcation rates are subject to change. FUSF will only be billed to companies based in the United States.
How is FUSF calculated?
Here’s how to calculate FUSF for the current year:
FUSF Fee = US Minutes Usage in $$ * Safe Harbor rate (64.9%) * IVoIP revenue bifurcation (see above) * FUSF rate %
Note: FUSF contribution rates vary quarterly. For current rates, please refer to the FCC website.
How can I be exempt from FUSF?
If your company files the FCC Form 499-A and pays FUSF contributions directly to USACF as a provider of telecommunications or Interconnected VoIP services, your company may qualify for an exemption from FUSF pass-through charges that we impose on FUSF-assessable services. Please contact us at tax@calltrackingmetrics.com to receive an exemption certificate to complete. Please note that you are required to renew this exemption certificate annually.
Where can I see the FUSF charged on my invoice?
Similar to the way we bill for sales and use tax, you will see FUSF fees (if applicable) charged to your account on the 1st of the month for any relevant usage occurring in the prior month.
You will see the FUSF charges within the “Taxes and Fees” area of the billing setting page.
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