IRS reminds employers about the benefits of using EFTPS to monitor payroll tax responsibilities

IRS reminds employers about the benefits of using EFTPS to monitor payroll tax responsibilities

2019-10-24

A recent IRS news release reminds employers that the Electronic Federal Tax Payment System (“EFTPS”) has features that can help them in meeting their tax obligations, whether they prepare and submit payroll taxes themselves or if they hire a payroll service provider (“PSP”) to do it on their behalf.

Anyone can use EFTPS. The service is offered free of charge from the U.S. Department of Treasury. People can easily self-enroll in the system and get their own PIN to periodically verify payments.

Third parties making tax payments on an employer’s behalf will generally enroll their clients in the EFTPS under their account. This allows the PSP to make deposits using the employer’s Employer Identification Number (EIN).

Employers can report problems with their PSP that results in a tax bill. Employers who believe that a bill or notice received is a result of a problem with their PSP should contact the IRS as soon as possible by calling or writing to the IRS office that sent the bill, calling 800-829-4933 or making an appointment to visit a local IRS office.

Employers enrolled in EFTPS can make up any missed tax payments and keep making tax payments if they change payroll service providers in the future. Employers can also update their information to receive email notifications about their account’s activities. Access to this feature requires a PIN and password for the system.

Once Employers opt-in for email notifications, they will receive notifications about payments they submit, including those made by their PSP. Email notification messages show:

  • Payments scheduled
  • Payment cancellation
  • Return of payments
  • Reminders of scheduled payments

If an employer suspects their payroll service provider of improper or fraudulent activities involving the deposit of their federal taxes or the filing of their returns, they can file a complaint with the Return Preparer Office using Form 14157, Complaint: Tax Return Prepare (PDF). A check-box on Form 14157 allows the employer to select “Payroll Service Provider” as the subject of the complaint. Once received, Form 14157 complaints receive expedited handling and investigation.