The Electronic Federal Tax Payment System (EFTPS) is the free, easy to use federal site used by employers and third-party providers to make mandatory electronic federal tax payments. Payroll services deposit Federal Withholding, Social Security, Medicare and FUTA taxes, but it is also used to make other business tax payments.
Third party payroll services, such as PayDay Payroll Resources, will enroll taxpayers in EFTPS under their own account and make tax deposits for all clients in one batch using employers’ federal identification numbers. When the third party enrolls, it will generate an “EFTPS Inquiry PIN” and notice that is sent to the employer. This will assist the employer in enrolling in the EFPTS program so they can review and verify that tax payments are being made by the third party. Employers with an EFTPS account can opt-in for email tax deposit notifications and make tax payments if necessary.
Although third parties may be collecting, reporting and remitting federal tax obligations on an employer’s behalf, it is ultimately the employer’s responsibility to ensure that all taxes are paid on time and in full. By having an EFTPS account, the employer can keep an eye on their tax responsibilities and make sure third parties are depositing all required tax payments.
If an employer would like to create an EFTPS account, they can simply go to eftps.gov or contact EFTPS Customer Service at 800-555-4477 for an enrollment form.