WHAT IS AN “EFTPS” ACCOUNT AND WHY SHOULD EVERY EMPLOYER HAVE ONE?

Electronic Federal Tax Payment System (EFTPS) is a free account can help business owners keep track of and ensure all tax payments are made timely.

The Electronic Federal Tax Payment System (EFTPS) is the free, easy to use account offered to employers and third-party providers to make mandatory electronic federal tax payments.  Payroll services will deposit Federal Withholding, Social Security, Medicare and FUTA taxes, but the EFTPS is also used to make other business tax payments. 

Third party payroll services, such as PayDay Employer Solutions, will often enroll taxpayers in EFTPS under their own account and make the 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 you would like to create an EFTPS account, please visit: eftps.gov or call 800-555-4477 to request an enrollment form or contact us with questions.

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