EFTPS Overview
EFTPS (Electronic Federal Tax Payment System) is a free service provided by the U.S. Department of the Treasury that allows businesses and individuals to pay federal taxes electronically. The IRS requires most federal employment taxes to be paid electronically, and EFTPS is the standard, secure system for doing so.
Why Payroll Vault Enrolls Clients
Payroll Vault enrolls their clients in EFTPS to legally and securely make federal tax payments on their behalf, ensuring IRS compliance. The process safeguards both the client and payroll provider by confirming payments are made timely and providing tracking and confirmation for every payment.
Client Responsibility
Even when using a payroll service, clients are ultimately responsible for ensuring their federal tax payments are accurate and timely. EFTPS access allows clients to monitor, verify, and track payments made on their behalf.
Our Process at Payroll Vault
Our tax team reviews EFTPS enrollments in iSolved daily and enrolls new clients promptly. Once enrolled, the IRS sends a confirmation letter to the client containing a 4-digit PIN, which is required to register their EFTPS account and view tax payments.
What Clients Do with their PIN
- The Payroll Vault tax team does NOT need your PIN number. They receive their own assigned PIN to make payments on your behalf.
- Use your PIN to activate your EFTPS account online and set up a password.
- Log in periodically to review payroll tax payments made on your behalf.
- Keep your PIN for recordkeeping and future access.
- If using EFTPS by phone, the PIN is required to verify your identity.
Best Practice: Keep your PIN secure and regularly check your EFTPS account to avoid payment issues and ensure compliance.
Example of an EFTPS letter to client with their EFTPS PIN and enrollment number.
