What is the EFTPS?
The EFTPS is a U.S. Department of the Treasury payment system designed to streamline federal tax payments. The system allows enrolled taxpayers to pay taxes online or by phone, although new individual enrollments are no longer available, and individual taxpayers are being directed to IRS Direct Pay or IRS Online Account for Individuals.
Employers often find it useful to submit employees‘ payroll tax withholdings, the company’s estimated federal income taxes and many other types of federal tax payments online.
You can also perform the following:
- Schedule estimated tax payments up to a year in advance
- Change or cancel upcoming tax payments
- Track your payment history
- Access up to 15 months of payment history online
The EFTPS provides a confirmation number for each transaction, which can help support internal documentation and audit readiness.
Benefits of using the EFTPS for taxes
EFTPS can be a useful tool for employers to manage their federal tax payments, including confirmation tracking, electronic processing and accessible payment history.
The following are some benefits of using EFTPS to pay taxes:
- 24/7 access: Make tax payments online or by phone at any time.
- Payment scheduling: Set up payments in advance to help support timely tax payments.
- Immediate confirmation: Receive instant verification of each payment.
- Detailed records: Access a clear payment history to reconcile accounts and prepare for audits.
- Electronic processing: Reduce reliance on paper checks, which may help lower the risk of delays or processing errors.
- Direct payments: Process payments directly with the Internal Revenue Service (IRS).
How to enroll in the EFTPS
You can visit the EFTPS website to enroll online, or request an enrollment form from a customer service agent if you prefer a paper option.
During enrollment, you may be asked to provide the following information:
- Employer Identification Number (EIN) or Social Security Number
- Business name
- Business telephone number
- EFTPS contact person’s full name, address and telephone number
- Bank account information
If you registered for your EIN via Express Enrollment for New Businesses and activated your EFTPS account at the same time, you may not be required to enroll separately.
After your enrollment is validated, you’ll receive a PIN by U.S. mail, and you use that PIN to activate your EFTPS account.
To activate your account, you may be asked to provide the following information:
- Bank account number
- Telephone number or contact information
- Confirmation number
- EFTPS system password
The EFTPS system typically takes a few days to verify your banking information, so plan accordingly when registering.
Common business taxes you can pay via the EFTPS
The following is a list of the types of business tax payments you can make with the EFTPS:
- Quarterly employment tax return (Form 941).
- Quarterly federal excise tax return (Form 720).
- Annual Federal Unemployment Tax Act (FUTA) tax return (Form 940).
- Annual return for agricultural employers (Form 943).
- Annual return of withheld federal income tax (Form 945).
- U.S. corporation income tax return (Form 1120).
- Private foundation return (Form 990-PF).
- Estate or trust income tax return (Form 1041).
- Annual withholding tax return for U.S. source income of foreign persons (Form 1042).
- Employer’s annual railroad retirement tax return (Form CT-1).
“Running a team and managing payroll comes with a lot of distinct tasks, so having something like EFTPS in place can make a real difference. It gives me confidence that payments are tracked and confirmed. Once it’s set up, it may save time and support timely deposits.”
—Ashlee Malet, MBA in accounting
This article is for informational purposes only and does not constitute financial advice. Consult with a licensed financial professional for any issues you may be experiencing.
