hey it's patti scharf CPA and co-founder of catching clouds the leader in
e-commerce accounting today I want to talk about EFTPS EFTPS stands for
electronic federal tax payment system it is the system that the US government
uses for collecting payments for estimated taxes you can make income tax
payments if you get a notice from the IRS you can submit payment that way you
can submit payment through payroll taxes and all of that when we have a new
client we always recommend that they actually sign up and get a login for
this not because we want them to make payments through the system but because
the system allows you to see what payments have been made on your account
so if you're outsourcing your payroll taxes or you you're asking your
professional to pay taxes in and your behalf then you can actually log in and
make sure that that's happening and it's happening the way you would expect it to
happen I recently did a video on internal controls and one of the stories
that I saw in the news was about somebody who pretended to be a CPA and
had the person write out their their income tax payment to them personally
yeah this should be a red flag guys but even if you do that and you're kind of
worried about it or whatever you can check up on people using the EFTPS
system so I'm going to show you how to use it and recommend that you take care
of that okay so the first thing you do is you log in and you enroll when you
enroll it's going to ask you a bunch of different questions you'll either enroll
as a business or an individual now if you're a sole proprietorship or you're
an S corporation or something like that where individually you are paying your
income tax you're going to want to sign up as an individual because this is
where those payments are going to be made so whatever taxpayer ID you using
to make those payments against that that's the account that you want to use
if you want to see what's going on with your business so payroll taxes and stuff
like that you want to set up business me as a small business owner I actually
have an account for both so I would recommend that you do that
okay so whichever one you choose you click on it it's gonna ask you for a
bunch of information it's gonna ask for your bank account this is the bank
account that they're gonna be pulling money out of so when you make a payment
they are pulling the funds right from your bank so there are a couple of
different pages you just go through and complete that once you do that they will
send you a letter and the letter will look something like this it'll have a
four digit PIN number and in an enrollment number and then what you need
to do is go back to the system so go back to the home page login go to login
so you'll log in using the Social Security number if you're using the
individual one or the ein number if you're using it for your business you
enter in the pin that's on that on that paper that they mailed to you and then
click on need a password okay so you'll get to this page you'll fill out your
social security number your PIN number and the last eight digits of the
enrollment number that are on that form that was mailed to you then when you
click next you will set a password and then you can start logging in okay so
once you have your password you can go ahead and log in use the taxpayer ID
number or social security number account it is that you set up and then you just
log in and then you can go up to payments and I would go to check payment
history and you can look back in time and really that's all there is to it if
you have questions you can go to the help and information tab and it'll give
you links to different how to's and different things like that or you can
always contact the government which I know everybody really loves to do I hope
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