Posts Tagged ‘EFTPS’

Are You Paying The Correct Amount of Income Taxes Each Quarter????

Tuesday, June 8th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

The Federal and state income tax systems are structured on a “pay-as-you-go” basis.  This means that everyone is expected to have deposited one-fourth of their ESTIMATED annual tax liability each and every quarter.  This can be accomplished by at least two different methods 1) payroll deductions on your behalf by an employer, or 2) making quarterly “Estimated Tax Deposits”.  You can also use any combination of these two methods as long as the end result is achieved.  You can also use the “Electronic Federal Tax Payment System”, which is both free and accurate – Welcome to EFTPS online 

To permit you to continuously calculate and update your annual projected tax liability for the year, throughout the year, you can use the soft copy of your last filed-and-accepted tax returns to perform the calculations for you – 1) open the filed-and-accepted tax return file, 2) save it as a new and different file name, 3) enter the financial data for the current tax year, 4) divide the annual “tax liability” by four, 5) save the file for future reference.

If you do not meet the Federal guidelines, there could be interest and penalties.  However, you will need to complete Federal tax form 2210 to make this determination ( 2020 Form 2210 ( )  IF your monthly and quarterly income was not relatively even throughout the year (i.e. you received a large salary bonus, you were promoted and also received a salary increase, you sold investments, or you received your “Required Minimum Distribution” (RMD), etc) you can use the same form to “annualize” your estimated income for the current tax year.

The IRS does have “Safe Harbor Rules”

The estimated safe harbor rule has three parts:

  • If you expect to owe less than $1,000 after subtracting your withholding, you’re safe.
  • If you pay 100% of your tax liability for the previous year via estimated quarterly tax payments, you’re safe. …
  • If you pay within 90% of your actual liability for the current year, you’re safe.”


Options For Paying Your Federal Income Taxes

Thursday, April 15th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

IRS Issue Number: Tax Tip 2021-50

Here’s how people can pay their federal taxes

The May 17 deadline for individuals to file and pay their federal income tax is fast approaching. While paying taxes is not optional, people do have options when it comes to how they pay taxes. The IRS offers a variety of ways to pay taxes.

Some taxpayers must make quarterly estimated tax payments throughout the year. This includes sole proprietors, partners, and S corporation shareholders who expect to owe $1,000 or more when they file. Individuals who participate in the gig economy might also have to make estimated payments. The deadline to pay estimated taxes remains April 15, 2021.


Do You Need To Make Quarterly Estimated Tax Payments????

Tuesday, April 8th, 2014

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

Tips on Making Estimated Tax Payments


If you don’t have taxes withheld from your pay, or you don’t have enough tax withheld, then you may need to make estimated tax payments. If you’re self-employed you normally have to pay your taxes this way.

Here are six tips you should know about estimated taxes:

1.   You should pay estimated taxes in 2014 if you expect to owe $1,000 or more when you file your federal tax return. Special rules apply to farmers and fishermen.

2.   Estimate the amount of income you expect to receive for the year to determine the amount of taxes you may owe. Make sure that you take into account any tax deductions and credits that you will be eligible to claim. Life changes during the year, such as a change in marital status or the birth of a child, can affect your taxes.

3.   You normally make estimated tax payments four times a year. The dates that apply to most people are April 15, June 16 and Sept. 15 in 2014, and Jan. 15, 2015.

4.   You may pay online or by phone. You may also pay by check or money order, or by credit or debit card. If you mail your payments to the IRS, use the payment vouchers that come with Form 1040-ES, Estimated Tax for Individuals.

5.   Check out the electronic payment options on The Electronic Filing Tax Payment System is a free and easy way to make your payments electronically.

6.   Use Form 1040-ES and its instructions to figure your estimated taxes.

Additional IRS Resources:

IRS YouTube Videos:

IRS Podcast:

Payroll Tax Rules for 2011

Friday, September 16th, 2011

The exclusive purpose for the information which is provided from this website is to disseminate  information, and not to provide tax advice.

The information below is related to the rules for your 2011 payroll tax reporting.  It will also provide a basis for comparison following Present Obama’s speech, which included several payroll tax law recommendations under the auspices of “The American Jobs Act of 2011”.  The President’s proposals have been presented to the U.S. Congress for review.   The final changes which could be enacted later this year or in 2012  may legislate additional changes to the existing payroll tax laws.  The overall strategy from the  White House recommendations is to reduce the employee component of payroll taxes to 1) provide more discretionary funds for employees and stimulate consumer spending (to expand our economy), and 2) reduce the payroll tax impact to employers to stimulate employment growth.   Updates for this article will be  provided when (if) any of these changes actually become Federal tax laws:

 □    Federal Income Taxes – in December 2011 Congress extended the expiration date for the Federal income tax rate structure which was enacted during the Bush administration.  This tax rate structure was due to expire on December 31, 2010.  Unless changed by Congress, the extended tax rates will not expire until December 31, 2013.  Page three of this hyperlink provides the tax table rate by filing status;

 □    Social Security Taxes –  in 2010 the Social Security taxes were 6.2% of the employee’s social security wages.  Employers are required to make an equal contribution (match) to the employee’s social security retirement plan.  In 2010 the total social security taxes were 12.4%.  However, for all of calendar year 2011, the employee component was reduced to 4.2% while the employer contribution remains at 6.2%.  See lines 5a-5c of the Federal Form 941 form (  For 2011 the maximum annual wages which are subject to social security taxes remains at $106,800.00;

 □    Medicare Taxes – both the employee and employer match tax rate remains at 1.45% each.  Therefore, the total payroll tax rate for Medicare is still 2.9%.  There is no statutory maximum salary base limitation for Medicare taxes. 

 □    Payroll Tax Deposits – Beginning January 1, 2011, employers must now use an electronic funds transfer system for all Federal tax deposits (such as deposits for employment taxes, excise taxes, and corporate income taxes).   Forms 8109 and 8109-B, (the Federal Tax Deposit Coupon), cannot be used for this purpose after December 31, 2010.  Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS).   Employers who do not want to use the EFTPS can arrange to have their tax professional,  financial institution, payroll service,  or other trusted third party make these tax deposits on their behalf.  Also, employers may arrange to have their financial institution initiate a same-day wire payment on their behalf.   The EFTPS is a free service which is provided by the Department of Treasury.   There may be fees and additional costs if these same services are provided by a tax professional,  financial institution,  payroll service, or other third party.

To obtain more information about EFTPS or to enroll in EFTPS, visit or call 1-800-555-4477.

Federal Tax Payments and the EFTPS

Tuesday, April 6th, 2010

Virtually all of the Federal and State taxing authorities want to make it just as easy as possible for you to pay your taxes.  You may remember many years ago when there was the multi-use Federal Tax Deposit coupon (Form 8109).  It was about the size of a standard check, could be used for different tax deposits, but the deposit itself had to be made in a Federal depository bank. Over the past 15 years major improvements have been provided to taxpayers everywhere – choose your “weapon”!  You have the option to pay using:

1)  Electronic withdrawal from your bank account

2)  Your telephone

3)  Either your debit or credit card

4)  A personal check and the U.S. Postal System, or

5)  The Electronic Federal Tax Payment System (EFTPS)

This FREE system began in 1996. If you’re not familiar with the EFTPS, you can obtain more information at this website:  There’s information on how to enroll, how to make payments, payment records that are available to both the business owner and to individual taxpayers, and the Frequently Asked Questions (FAQs) via this link:  You can even enroll on line!  This is an encrypted, secure website. 

Payments must be scheduled at least one calendar day prior to the tax due date by 8:00 p.m. ET. Your payment instruction will be executed on the date you selected, and your records will be updated at the IRS.  There is an advantage here for improving either your personal or business cash flow.  You retain your cash or working capital until the due date for the deposit or the date that you select for your payment(s).  If you are uncomfortable with the Federal or state government having access to your bank account, open a separate or special account just for your tax payments.  Most banks and financial institutions do not impose additional charges for these accounts.  Here is additional information on this subject: