The IRS has reminded small business owners that the Electronic Federal Tax Payment System (EFTPS) has features that can help in meeting their tax obligations. The EFTPS is secure, accurate, easy to use, and provides an immediate confirmation for each transaction. Further, the EFTPS is available to all taxpayers free of charge from the U.S. Department of Treasury, and enables employers to make and verify federal tax payments electronically 24 hours a day, seven days a week through the internet or by phone.
The Treasury requires the employment tax deposits to be made electronically through the EFTPS if the employer has outsourced certain payroll or tax related duties to third party payroll service providers. Third party payroll service providers generally enroll their clients in the EFTPS under their account, because it allows them to make deposits using the employer’s Employer Identification Number. Once this is done, an EFTPS Inquiry PIN may be generated for the employer which, once activated, would allow employers to monitor and ensure that the third party is making all the required tax payments. Employers who have not been issued Inquiry PINs and who do not have their own EFTPS enrollment should register on the EFTPS system to get their own PIN to periodically verify payments. Employers may also opt for email notifications, which requires a PIN and password to receive information about their account’s activities. Email notification messages show scheduled payments, payment cancellations, return of payments and reminders of scheduled payments.
Employers who use payroll service providers can enroll online at EFTPS.gov, or call EFTPS Customer Service at 800-555-4477 for an enrollment form.
For more help with employer tax obligations, contact a professional at Larson & Company today.