EFTPS Tax Payment System: Guide for Businesses & Individuals

Last Updated on: August 9, 2025

The Electronic Federal Tax Payment System (EFTPS) is a secure, user-friendly platform provided by the U.S. Department of the Treasury for paying federal taxes online or by phone. Whether you’re an individual taxpayer managing quarterly estimates or a business owner responsible for payroll taxes, EFTPS offers a reliable, trackable, and free way to stay compliant with the IRS.

This comprehensive guide walks through everything you need to know about EFTPS—from enrollment and payment types to comparisons with Direct Pay, automation tips, and fraud protection strategies.

What is the EFTPS?

The Electronic Federal Tax Payment System (EFTPS) is a digital tax payment service created and maintained by the U.S. Department of the Treasury. It allows taxpayers—including individuals, businesses, tax professionals, and payroll providers—to electronically pay federal taxes using a secure internet-based platform or a voice response system over the phone.

Unlike mailing checks or using a third-party payment processor, EFTPS is direct, government-managed, and completely free. The system was developed to modernize tax collections, enhance security, reduce processing errors, and ensure proper tracking of payments through official channels. It supports a variety of tax types, including income taxes, estimated taxes, payroll taxes, excise taxes, and more.

EFTPS offers:

24/7 online access
Scheduled payments up to 365 days in advance
Real-time verification
Payment history and receipts
A PIN and password-based login system for enhanced security

Who can use EFTPS to pay taxes?

EFTPS is available to anyone who needs to pay U.S. federal taxes—and is particularly vital for those with recurring or business-related obligations.

Eligible users include:

Individual taxpayers (e.g., paying 1040 balance due or estimated taxes)
Self-employed individuals and freelancers
Sole proprietors
Corporations (C corps, S corps)
LLCs and partnerships
Non-profits
Estate and trust entities
Tax professionals and accountants
Third-party payroll processors
Government agencies

There are no income thresholds or filing criteria to restrict access—anyone with a Taxpayer Identification Number (TIN) (SSN or EIN) can enroll and use EFTPS.

Is EFTPS mandatory?

For Individuals:

No, EFTPS is optional for individual taxpayers. You may choose between EFTPS, Direct Pay, credit/debit card processors, or paper checks (if accepted).

For Businesses and Employers:

Yes, EFTPS is mandatory for businesses that are required to deposit federal employment taxes. Since 2011, the IRS has phased out Form 8109 coupon books, meaning businesses can no longer mail in tax deposits via check.

Businesses must use EFTPS or a same-day wire transfer for:

Employment taxes (Forms 941, 940, 943, 944)
Corporate income tax (Forms 1120, 1120-S)
Excise taxes (Forms 720, 2290)
Trust fund recovery payments

Non-compliance with electronic payment rules can lead to IRS penalties, even if the tax payment is submitted on time by other methods.

What payment options does EFTPS offer?

EFTPS provides multiple options for tax filers to submit payments securely:

1. ACH Debit (Direct Debit)

You authorize the U.S. Treasury to debit your bank account.
Most common and recommended method.
No processing fees.
Can schedule future payments.

2. ACH Credit

You instruct your bank to initiate the payment.
Requires coordination with your financial institution.
You must format the payment using the NACHA CCD+ format, which may require technical setup.

3. Same-Day Wire Transfer

Used in urgent cases where tax deposits are due today.
Must be arranged directly through your bank by its daily cutoff time.
Not available on the EFTPS web interface—only processed via financial institutions.

EFTPS does not support payments by credit/debit card—that’s handled by IRS payment processors, which usually charge convenience fees.

Should employers set up an EFTPS account?

Yes, every employer should establish an EFTPS account as early as possible—even if they use a payroll provider. Here’s why:

Benefits for Employers:

Schedule biweekly, monthly, or quarterly payroll tax deposits
Avoid IRS penalties for late or non-electronic deposits
Access detailed payment history, useful for audits or reconciliations
Get confirmation numbers for every transaction
Correct or cancel payments before the effective date (if needed)
Enhanced security compared to mailing checks or third-party submissions

Even if your payroll service handles deposits, you remain legally responsible. Having direct access to EFTPS allows employers to verify deposits are made correctly and timely.

How does EFTPS compare to IRS Direct Pay?

Both are IRS-run systems, but they cater to different needs:

Feature	EFTPS	Direct Pay
Who can use it	Individuals & Businesses	Individuals only
Enrollment required?	Yes (PIN by mail)	No
Scheduling option	Up to 365 days in advance	Pay immediately or schedule for next day
Tax types supported	All federal tax types	Limited to 1040-related payments
Security	PIN + password	Identity verification (SSN, AGI, filing status)
Record retention	View 16 months of history	Short-term, no login for record
Change bank info	Saved to account	Must enter each time

Verdict:

Use EFTPS if you’re a business, schedule taxes in advance, or need historical records.
Use Direct Pay for quick, one-time payments for individual tax filings.

What are the other ways to pay taxes and why is EFTPS better?

Other IRS-accepted tax payment methods include:

Mailing a check with a payment voucher (Form 1040-V)
Credit or debit cards via IRS partners (e.g., PayUSAtax, ACI Payments)
Cash at participating retail locations (e.g., Walmart, 7-Eleven)
Same-day wire transfers

Why EFTPS is better:

Free of charge
Government-secured infrastructure
Full audit trail and payment confirmation
Can handle all IRS form types
Allows future scheduling and cancellations
No dependence on third-party processors

What payments can be made via EFTPS?

EFTPS supports over 30 types of federal tax payments, including:

Tax Type	Common Forms
Individual Income Tax	1040, 1040-ES, 1040-V
Employment Taxes	941, 940, 943, 945
Corporate Income Tax	1120, 1120-S
Excise Taxes	720, 2290
Estimated Taxes	1040-ES, 1120-W
Installment Payments	Monthly or periodic amounts
Estate & Gift Taxes	706, 709
Penalty and Interest	As billed by IRS
Trust Fund Recovery Penalty	Assessed TFRP cases

How do you enroll in the EFTPS?

Enrollment Process:

Visit www.eftps.gov.
Click “Enroll.”
Provide:
- Taxpayer Identification Number (SSN or EIN)
- Name as it appears on IRS records
- Bank account and routing numbers
- Business or personal contact details
Within 7 business days, you’ll receive:
- PIN via U.S. Mail
- EFTPS enrollment confirmation letter
Visit the site again to create your password and complete activation.

How do you make a payment on EFTPS?

Go to www.eftps.gov.
Log in using TIN, PIN, and password.
Click “Make a Payment.”
Choose the appropriate tax form, tax period, and payment type.
Enter your payment amount and date.
Confirm and submit. You’ll receive a confirmation number.
Print or save the confirmation for your records.

Deadline Reminder: Schedule payments by 8 p.m. ET at least one calendar day before the due date.

Can state taxes be paid through EFTPS?

No. EFTPS is only for federal taxes. For state income, sales, or payroll taxes, use your state’s department of revenue portal or employer services system.

Do businesses need a separate EFTPS account?

Yes. Even if the business is a sole proprietorship, it must enroll separately using its EIN to make federal payroll or business tax payments.

An individual’s EFTPS account based on an SSN cannot be used for business-related taxes.

Can you automate recurring EFTPS payments?

Yes and no.

You can manually schedule recurring payments—up to 365 days in advance.
However, EFTPS does not support automatic drafts like a subscription model.
Each payment must be individually scheduled.

Can sole proprietors enroll in EFTPS as a business?

Yes. If a sole proprietor has an EIN, they should create a separate EFTPS business account for:

Payroll tax deposits
Business-related estimated taxes
Form 941 or 940 deposits

They can also keep a separate individual EFTPS account under their SSN for Form 1040 or 1040-ES payments.

Is EFTPS enrollment mandatory for corporations?

Yes. All corporations are required to make tax payments electronically, and EFTPS is the IRS’s preferred method.

Failing to use EFTPS can result in:

Penalties
Loss of compliance status
IRS notices or enforcement action

How do you change a bank account in EFTPS?

Log in at www.eftps.gov.
Click “My Profile”.
Select “Financial Institution Information.”
Edit your routing and account numbers.
Confirm and save.

Make changes before any scheduled payments, ideally 1–2 business days in advance.

Is there a fee to use EFTPS?

No. EFTPS is a free service. Unlike credit/debit card processors (which charge 1.87%–2.35% in fees), EFTPS is cost-free, regardless of the number or size of payments.