If your company’s federal tax deposits total more than $200,000 per year, you’ve got no choice. But here are four good reasons you’ll want to use the Electronic Federal Tax Payment System (EFTPS) no matter what your tax bill is.

These very convincing arguments will have skeptics anywhere in your organization — from your payroll clerk to the CEO — embracing the federal online system:

1. On-time payments — You can enter your payment instructions up to 120 ahead of time. That means there’s no chance you’ll inadvertently miss a tax deadline.
2. Protection against overpayments — That 5% interest IRS is giving you this quarter probably isn’t worth paying more than you have to in federal taxes. When you enroll you can set a Optional Payment Amount Limit so if you exceed it, the system will automatically stop you.
3. Easy to make needed changes — Two features give you the flexibility to quickly make adjustments: “Edit Enrollment” lets you edit contact info and payment money limits, while “Edit Financial Institution” allows you to edit data from your bank (usually, a Routing Transit Number (RTN) or Account Numbers).
4. Security is tighter than ever — Effective February 2008, the system required all users to change their passwords to make them more complex (Each must now contain both uppercase and lowercase alphabetical characters and at least one character that is either a numeric or a special character [$@#].)

To enroll or find out more info on the federal program, you can visit the Web site here.

Tags: EFTPS, Online system, payments, Taxes