Are you still taking time out of your day to make tax payments in person?
It's time to put down the checkbook and step away from the post office. There's an easier way to pay your taxes now: the Electronic Federal Tax Payment System.
Save time, money, and stress by paying your taxes the easy way. Wondering what exactly the EFTPS is and how it works? Read on to learn everything you need to know.
What Is the EFTPS?
This is the online payment system that lets you pay taxes for your business online. Individuals may also use the Electronic Federal Tax Payment System to pay their estimated taxes when needed.
You can also use this system to pay via phone, rather than online. Either way, it saves you from making extra trips and taking more time than necessary to pay taxes.
What Can Be Paid With this System?
Using this system, you can pay several different types of business taxes. Let's take a look at some of the common types of taxes that you can pay using this method.
If you're self-employed, taxes for Medicare and Social Security won't be withheld automatically. Instead, you'll have to pay the self-employment tax.
If you own a business, your salary and its tax operate differently than those of your employees.
Income taxes won't be taken from your salary, so you'll need to regularly pay estimated taxes. These may be made every quarter, every month, or even every week.
This is the income tax that you, the employer, will withhold from your employees' wages.
In addition to income tax, there are also FICA tax portions that need to be withheld, including the taxes for Medicare and Social Security. You'll need to pay federal unemployment taxes, too.
Some products, including alcohol and gasoline, have excise taxes required by the government. These aren't taxes that you directly pay yourself, but rather taxes that are paid by the customer who buys those products.
Corporations have to pay federal corporate taxes, which can also be paid using the EFTPS.
Is This a Secure System?
Online security is a bigger concern than ever before. In 2016, there were 1,093 total data breaches in the U.S. Those breaches affected not just businesses, but government agencies too.
It makes sense to be concerned about the security of the Electronic Federal Tax Payment System. Is this really a safe way to pay your taxes?
You'll need to use your Employer Identification Number or Social Security Number to enroll, as well a