Many businesses are required to use Electronic Federal Tax Payment System (EFTPS Electronic Federal Tax Payment System is a government program to pay federal tax obligations electronically.) as the method to submit their tax payments.
The Business Banking system provides tools that let you manage your EFTPS usage in much the same way that you manage ACH The ACH is a network of regional associations, inter-bank associations, and private-sector processors. ACH payments are processed and settled electronically, thereby increasing reliability, efficiency and cost effectiveness. ACH payments are generally settled in one day or greater. and Wire Transfer usage.
The Tax Payments service lets you create a payment file that can be submitted to your financial institution a bank, thrift, or credit union.
To Create a Tax Payment:
Select the Tax Payments option on the Funds Transfer menu and then click Add EFTPS. The Add EFTPS screen appears.
2. Select the Taxpayer Name - Tax ID (Tax Identification Number) you want to pay.
3. Select the Financial Agent that will receive the transfer.
4. Select the Debit Account from the drop-down list.
5. Enter the Tax Payment Effective Date, using mm/dd/yyyy format.
6. (Optional) Check the Create Offset Transaction An ACH transaction is an entry within the NACHA file that indicates how the participant The participant is the individual or organization that will be affected by the ACH transaction (payee or draftee). An ACH transaction may debit or credit a participant's account, e.g., a payroll deposit or a payment for services rendered. The participant information is referenced by the ACH transaction.'s account should be affected. The transaction includes a reference to the participant, how the account is affected, and the amount. box if you want the EFTPS file to be balanced. If your FI requires balanced transactions, this box will not appear and an offset transaction will automatically be created.
7. Use the month and date drop-down menus to select the Tax Period Ending Date.
8. Use the Tax Type drop-down list to select the tax to which this payment applies.
If you selected Form 720 – Quarterly Excise Tax from the Tax Type drop-down list, select the Excise Tax Type.
9. Enter the Tax Amount. Some forms require specific additional information in the Amount 2 and Amount 3 fields:
Form 941: Tax Amount = Social Security Amount; Amount 2 = Medicare Amount; Amount 3 = Withholding Amount
Form CT-1: Tax Amount = FICA Amount; Amount 2 = Industry Amount; Amount 3 = Supplemental Amount
Note that the sum of the three fields should equal the total tax payment amount.
10. Click the Add button to submit the payment.