In 1995, Consultants in Data Processing, Inc. ("CDP"), an Arizona corporation in the business of information technology consulting and payroll services, and Bill Harris, an expert in the area of payroll tax filing, began collaboration on the development of a premier tax filing software product, to be known as MasterTax. Historically, companies had only two choices for tax filing: utilize an outside payroll service for payroll processing and tax filing, or complete the task in-house. Either way, these methods created issues with cost, time, efficiency, and labor organization. The MasterTax design, based upon generally accepted accounting principles, was intended to overcome these issues as a fully supported in-house tax filing solution.

In 1997, MasterTax version 1.0 was released to the marketplace, and since its introduction, MasterTax has been the fastest growing tax software program in the industry. MasterTax continually improves tax filing quality and compliance through research and updates to its massive rules database. Currently, MasterTax supports over 10,000 federal, state and local taxes.

The initial goal for MasterTax was not only to create the best payroll tax software application available, but also to ensure the continued enrichment of the product. Ongoing quarterly enhancements have been made to the software since it was introduced. The customer base ranges from small payroll service providers and professional employer organizations to large multi-national companies. MasterTax customers produced over 55,000 Federal 941s in the 4th quarter of 2005.

In 2006, MasterTax Service was added to the product/service offerings. Complete outsourcing of the payroll tax process is now available through MasterTax Service, LLC.

Headquarters for MasterTax, LLC, and MasterTax Service, LLC, are located in Scottsdale, Arizona, along with development and support facilities.

The owners of MasterTax, LLC, and MasterTax Service, LLC, are CDP (a privately-held company owned by Richard and Brenda Warneka), Bill Harris and James Peak.


The principals of MasterTax, LLC, are as follows:

• Richard Warneka, who has 40 years of experience in sales and management in the data processing industry. He began as a salesman for IBM's Service Bureau Corporation, and went on to become President of CIBER, Inc., before he and his wife Brenda moved to Arizona in 1979 to start CDP. He has an MBA from Michigan State University.
• Bill Harris, who has been active in the development of computerized payroll tax solutions for over 25 years, and is the founder and "technical genius" behind MasterTax. Before joining CDP, he was Information Services Vice President of Systems Tax Service, Inc., then the country's largest independent payroll tax processor. Prior to that, he was the Director of PC Development with CCH Computax. He attended California State University, Long Beach, majoring in Chemistry.
• Karen Harris started her career in data processing as a supervisor with Computer Sciences Corporation in California. While her husband, Bill Harris, was developing the MasterTax software, Karen compiled the compliance requirements for the 10,000 plus taxing authorities and performed an integral role in the development and management of the Compliance Resource Department. She subsequently formed and managed the Customer Support Department. Karen currently manages the Quality Control Department of MasterTax.
• Brenda Warneka, who has many years of experience in the data processing business starting with IBM's Service Bureau Corporation. She is a lawyer and a CPA.
• James Peak, who has been with CDP since 1984, and is also the director of HRnet, an Internet-based Human Resources system for mid-range employers world-wide. He has a B.S. in Business Information Systems.

12/19/2006