EFTPS Payment | Setting Up the Electronic Federal Tax Payment System

EFTPS Payment | Setting Up the Electronic Federal Tax Payment System

hey it’s patti scharf CPA and co-founder
of catching clouds the leader in e-commerce accounting today I want to
talk about EFTPS EFTPS stands for electronic federal tax payment system it
is the system that the US government uses for collecting payments for
estimated taxes you can make income tax payments if you get a notice from the
IRS you can submit payment that way you can submit payment through payroll taxes
and all of that when we have a new client we always recommend that they
actually sign up and get a login for this not because we want them to make
payments through the system but because the system allows you to see what
payments have been made on your account so if you’re outsourcing your payroll
taxes or you you’re asking your professional to pay taxes in and your
behalf then you can actually log in and make sure that that’s happening and it’s
happening the way you would expect it to happen I recently did a video on
internal controls and one of the stories that I saw in the news was about
somebody who pretended to be a CPA and had the person write out their their
income tax payment to them personally yeah this should be a red flag guys but
even if you do that and you’re kind of worried about it or whatever you can
check up on people using the EFTPS system so I’m going to show you how to
use it and recommend that you take care of that okay so the first thing you do
is you log in and you enroll when you enroll it’s going to ask you a bunch of
different questions you’ll either enroll as a business or an individual now if
you’re a sole proprietorship or you’re an S corporation or something like that
where individually you are paying your income tax you’re going to want to sign
up as an individual because this is where those payments are going to be
made so whatever taxpayer ID you using to make those payments against that
that’s the account that you want to use if you want to see what’s going on with
your business so payroll taxes and stuff like that you want to set up business me
as a small business owner I actually have an account for both
so I would recommend that you do that okay so whichever one you choose you
click on it it’s gonna ask you for a bunch of information it’s gonna ask for
your bank account this is the bank account that they’re gonna be pulling
money out of so when you make a payment they are pulling the funds right from
your bank so there are a couple of different pages you just go through and
complete that once you do that they will send you a letter and the letter will
look something like this it’ll have a four digit PIN number and in an
enrollment number and then what you need to do is go back to the system so go
back to the home page login go to login so you’ll log in using the Social
Security number if you’re using the individual one or the ein number if
you’re using it for your business you enter in the pin that’s on that on that
paper that they mailed to you and then click on need a password okay so you’ll
get to this page you’ll fill out your social security number your PIN number
and the last eight digits of the enrollment number that are on that form
that was mailed to you then when you click next you will set a password and
then you can start logging in okay so once you have your password you can go
ahead and log in use the taxpayer ID number or social security number account
it is that you set up and then you just log in and then you can go up to
payments and I would go to check payment history and you can look back in time
and really that’s all there is to it if you have questions you can go to the
help and information tab and it’ll give you links to different how to’s and
different things like that or you can always contact the government which I
know everybody really loves to do I hope you like this video if you did please
like share comment if you haven’t already please subscribe
and I’ll catch you later

9 Replies to “EFTPS Payment | Setting Up the Electronic Federal Tax Payment System”

  1. As a tax professional, what additional steps may be needed to access a clients EFTPS. Is this something we need a PoA to do or does the client still need to provide information regarding the payments from EFTPS?

  2. Hi Catching Clouds Academy. Thanks for your video!
    I work for a global payroll company called Apdata. We are currently getting our system in compliance within the stated of Florida. Likely our competitors, we are supposed to withdraw the related payroll taxes from our client's bank account then use these funds in order to pay taxes within the federal government. That being said, should I enroll as a Business account in order to submit payments on behalf of our clients?
    Any other tip/link that would give us information on required steps to go through during this set phase would be greatly appreciated.
    Thank you!
    Alan da Rocha

  3. All of these videos fail to mention the last step which is you have to file a return still. There are only a few approved providers that are allowed to accept uploaded forms so most still need to file the 941 form at the end of the quarter. Where to file is a bit confusing as you already made a payment so in theory it would be to the mailing address "without a payment" that is appropriate to your business location.

  4. I set this up there is no form for quarterly in here, searching by form number doesn't bring anything up for submitting quarterly payments, please help!

Leave a Reply

Your email address will not be published. Required fields are marked *