As with most HR, and payroll systems these days, there are two ways to do things: the “old fashioned” manual way and the new online way which offers a variety of methods. This principle is also the same for paying your payroll taxes.
Option one: the old fashioned way to pay payroll taxes was by using the tax deposit coupon (Form 8109-B), fill out the appropriate boxes designating which tax you’re paying and the amount being deposited. Then take the coupon to your local bank to make the deposit. The bank sends this deposit on to the appropriate federal agency.
Option two: pay your payroll taxes directly to the government through EFTPS, the Electronic Federal Tax Payment System. This service is a tax payment system provided free by the U.S. Department of Treasury which allows employers to pay federal taxes electronically via the Internet or phone 24/7.
Option three: pay your payroll taxes via an ACH (Automated Clearing House) EFTPS Direct Deposit file provided by your HRIS software solution. Rather than manually entering amounts from payroll software reports into the on-line government site many fully functional HRIS software solutions now offer an automated method of paying payroll taxes. This automation allows your staff additional time to focus on other tasks rather than spending time with manual processes.
According to the IRS.gov website, more than 9.5 million taxpayers are currently enrolled to pay their taxes on-line. Since EFTPS started in 1996, there have been over 901 million electronic payments made, totaling over $20 trillion!
Jessica Hogue- Application Specialist