New Federal Electronic Deposit Requirements

by

If you are a business owner with employees, you have probably received a notice from the Internal Revenue Service titled, “Your 2011 Federal Tax Deposit Requirement for Form 941 – Review Carefully.”  This form was sent to assist you with your federal payroll tax deposit requirements for 2011.

 Beginning in 2011, the IRS has adopted final regulations that require all federal tax depositors to begin making payments by electronic funds transfer (EFT).  Employers who are currently allowed to use Federal Tax Deposit Coupons (Form 8109) and paper checks to pay payroll tax liabilities will be required to deposit them electronically through the Electronic Federal Tax Payment System (EFTPS).  As of January 1, 2011, the Treasury Department will no longer be maintaining the paper coupon system and all payments must be made electronically.  If you mail a deposit to the IRS rather than depositing it electronically, a 10% penalty may be applied to each non-electronic deposit. 

 You can sign up for EFTPS at www.eftps.gov or call EFTPS Customer Service at 1-800-555-4477.  Once your company is enrolled, you can make any of your federal tax deposits via the internet or telephone.  You will need to initiate your tax payment at least one calendar day in advance of the due date and you can schedule payments up to 120 days in advance of their due date.

If your payroll tax liability is less than $2,500 you have the option of remitting the employment taxes with your quarterly or annual return or voluntarily making the deposits by Electronic Fund Transfers.

If you require any assistance in enrolling in EFTPS, please contact us at your earliest convenience.  It will take approximately seven business days after starting the enrollment process before you will be able to use EFTPS to make any payments.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: