Electronic Federal Tax Payment System (EFTPS)
The Electronic Federal Tax Payment System (EFTPS) is an online federal tax payment system that allows you to pay business taxes online. Individuals can use EFTPS to pay estimated taxes and businesses can use the system to pay federal employment and corporate taxes. Tax payments can be made online or by phone through EFTPS.
What Taxes Can be Paid with EFTPS?
EFTPS can be used to make these business tax payments:
- Federal payroll taxes, including FICA tax and withholding for employee federal income tax (Form 941 Employer's Quarterly Federal Tax Return) and Form 944 - Employer's Annual Federal Tax Return
- Federal unemployment taxes, (Form 940 - Employer's Annual Federal Unemployment (FUTA)Tax Return
- Corporate income taxes (Form 1120 U.S. Corporation Income Tax Return)
- Estimated taxes for individuals (Form 1040-ES) or for corporations (Form 1120-ES)
- Excise taxes (Form 720)
- Payments on installment agreements. You can make payments on a partial payment installment agreement (PPIA) by using EFTPS.
How do I Enroll in EFTPS?
Existing businesses and individuals can enroll in EFTPS by submitting an online application.
- Go to the EFTPS website and click on "Enrollment" at the bottom of the screen.
- You will need to enter your Employer ID Number (EIN) and the usual business contact information.
- Then you will be asked to authorize transactions. You can do this authorization yourself by providing your business checking account information (routing number and account number), or you can check with your financial institution to see if they will do the authorization for you. You can make the authorization by phone also.
When the authorization process is complete, you are enrolled in EFTPS.
New Business Pre-enrollment
The IRS says that "any business requesting a new EIN and indicating it will have Federal Tax Deposit obligations (for payroll taxes and other business taxes) is automatically pre-enrolled in EFTPS." You will be notified by the IRS of your enrollment in the system. Then you can activate your enrollment by calling a secure toll-free phone number and entering bank account information.
To enroll, go to the EFTPS website You will need:
- Your Taxpayer ID Number (your Employer ID Number)
- Your financial institution information, including routing number, account number and account type (checking or savings)
You can schedule a payment, which will automatically be taken from your checking or savings account on the date you choose.
How Does EFTPS Work?
When you sign up for EFTPS, you provide information about your business bank account (routing number and account number).
Once your account is verified, you make payments electronically using this system, just like any online banking or bill payment system. You can schedule payments ahead of time and schedule as many payments as you want. When a payment is made, you receive an acknowledgment of the transaction.
To avoid being considered as "late" payments must be made no later than 8 p.m. ET the day prior to the due date. So, if your tax payment is due on April 15, it must be entered no later than 8 p.m. ET on April 14.
Some features of the EFTPS system, according to the IRS. You can
- Schedule payments up to 365 days in advance
- Make payments by phone, in addition to online payments
- Keep track of payments online.
To avoid fines and penalties, be sure to submit tax payments to EFTPS by 8 p.m. ET at least one calendar day before the tax due date.
Is the EFTPS System Secure?
When you sign up, you use your Employer ID or Taxpayer ID number and you create a PIN number. Then you set up a password for using the system. The IRS says, "EFTPS uses the highest level of security available on the Internet."
What's the Difference Between EFTPS and E-File?
Simply stated, EFTPS is for making tax payments. E-file is for submitting tax returns (which might also include making tax payments). EFTPS is part of the E-file system of the IRS.
More about EFTPS
The IRS has an EFTPS web page with more information on how the system works and details on how to enroll.