Electronic Federal Tax Payment System (EFTPS):- The EFTPS (Electronic Federal Tax Payment System) is a federal tax payment system that allows you to pay your business taxes online. Income taxes, quarterly estimated taxes, federal employment taxes, and company taxes can all be paid with EFTPS.
Which Taxes Can I Pay with EFTPS?
Many types of tax payments can be made with EFTPS, including:
- Form 941 – Employer’s Quarterly Federal Tax Return and Form 944 – Employer’s Annual Federal Tax Return are used to report federal payroll taxes, including FICA tax and withholding for employee federal income tax.
- Employer’s Annual Federal Unemployment Tax Return (Form 940 – Employer’s Annual Federal Unemployment (FUTA)Tax Return)
- Taxes on corporate profits (Form 1120 U.S. Corporation Income Tax Return)
- Individuals’ estimated taxes (Form 1040-ES) or corporations’ estimated taxes (Form 1120-W)
- Excise taxes levied by the federal government (Form 720)
- Payments made via installment contracts. EFTPS can be used to make payments on a partial-payment installment arrangement (PPIA).
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Non-depository payments of federal income taxes, estimated taxes, and employment taxes can also be made using EFTPS.
How Do I Enroll in EFTPS?
Existing businesses and individuals can sign up for EFTPS by filling out the following online form:
Go to the EFTPS website and go to the bottom of the page to “Enrollment.”
You’ll need to provide your EIN (Employer Identification Number) and the regular contact information for your firm. As an identifier, you will be given a PIN number.
Then you’ll be asked to authorize transactions, which you can do by supplying your business checking account information (routing number and account number) or by asking your financial institution to do it for you. You can also make the authorization over the phone.
How Does EFTPS Work?
You supply information about your company bank account when you sign up for EFTPS (routing number and account number).
Once your account has been validated, you can use this system to make electronic payments, just like any other online banking or bill-paying system.
You can plan ahead of time and make as many payments as you wish. When you make a payment, you will receive a confirmation of the transaction.
You supply information about your company bank account when you sign up for EFTPS (routing number and account number).
According to the IRS, the EFTPS system has the following features:
- Payments can be scheduled up to 365 days in advance.
- Keeping track of payments via the internet
- Payments can be easily changed or cancelled.
- With email alerts, you can keep track of your payment.
- Viewing the payment history for the past 15 months
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Can I Use EFTPS if I Have a Payroll-Processing Service?
EFTPS can be used by your payroll processing business to make some tax payments and filings on your behalf.
Even if you use a payroll service, enrolling in EFTPS allows you to monitor payments made on your behalf and makes switching payroll services easier.
Is the EFT9PS System Secure?
You use your Employer ID or Taxpayer ID number to sign up, and you have a PIN number. After that, you create a password to access the system.
“You can be certain that your information is secure, and that no one has access to your account unless you permit it,” the IRS states.
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What’s the Difference Between EFTPS and E-File?
Simply put, EFTPS is a system for paying taxes. The term “e-file” refers to the electronic filing of tax returns (which might also include making tax payments). EFTPS is a component of the IRS’s e-filing system.
Tips: The IRS provides a document called EFTPS, A Guide to Getting Started that explains how the system works and how to enroll.
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