Electronic Federal Tax Payment System (EFTPS)

EFTPS Explained
EFTPS Explained. LdF/Getty Images

What is the 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? 

The IRS says:

Businesses and Individuals can pay all their federal taxes using EFTPS. Individuals can pay their quarterly 1040ES estimated taxes electronically using EFTPS, and they can make payments weekly, monthly, or quarterly. Both business and individual payments can be scheduled in advance.

EFTPS can be used to make these business tax payments:

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 ahve 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.

    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). Read more about the difference between EFTPS and E-file. 

    Read More about EFTPS

    Read more from the IRS about EFTPS on its EFTPS web page. 

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