How to Deposit Taxes

Deposit your taxes using the Electronic Federal Tax Payment System.

Employers must deposit payroll taxes on a quarterly basis. Those who deposit more than $2,500 per quarter are required to deposit their payroll taxes on a monthly basis. In the past, payroll taxes were deposited by using Internal Revenue Service (IRS) form 8109-B, the federal tax deposit coupon that employers would take to their bank along with a check. As of 2011, banks will no longer accept federal tax coupons and all taxpayers will be required to deposit their payroll taxes by using the Electronic Federal Tax Payment System, the IRS online payment system.

Instructions

1. Sign up to become a member of the Electronic Federal Tax Payment System, or EFTPS. Visit the website and click on "Enroll" to enter your business information, create a user ID and password.

2. Sign in to EFTPS and click on the "Payments" link located at the top of the page. You will choose the type of payment you would like to make. Depending on your business and its payroll requirements, you can choose to make your tax deposits monthly or quarterly.

3. Choose the payment method you would like to use. You can have your taxes electronically deposited using a bank transfer or by credit card.

Tips & Warnings

• Payroll taxes are not the only type of tax deposits that can be made on EFTPS. You can pay any of your taxes using the website all day, every day.

References

• Electronic Federal Tax Payment System