By Austin Miller, founder of The Daily Hash
The EFTPS Explained
The EFTPS (Electronic Federal Tax Payment System®) is the IRS’s online system for paying estimated taxes. The notice you received is a standard letter received by all new businesses. Although you may not currently be required to file payroll taxes or quarterly estimates, please keep your EFTPS letter for future reference.
Once your business begins paying salaries/wages to yourself and (or) employees, payroll tax payments can be made through the EFTPS system. Also, if you expect to owe more than $1,000 in federal income taxes at the year's end, quarterly estimated payments may be required. If either of the above situations apply, feel free to contact one of our team members to setup a free consultation in which you can discuss the matter.
For more detailed information regarding the EFTPS system, feel free to visit the IRS's dedicated EFTPS site. The IRS has recently updated their site to include the following features:
- Verify the bank account that will be used when making a payment
- Change the bank account used for a payment
- Self-select your PIN when creating an additional enrollment
- Terminate an enrollment you are no longer using