Business owners need to register for EFTPS, the federal government's tax paying portal in order to pay business taxes. Paying taxes through EFTPS does not have to be hard.
- [Instructor] Once you have your EIN, you're ready to get started with actual business operations. However, you're also going to need to register with EFTPS, or the Electronic Federal Tax Payment System in pretty short order. This'll be required in order to pay any payroll taxes among other things so let me show you how to register. I'm here at the EFTPS main dashboard. Again, if you can't find this I suggest you simply use Google and search for EFTPS registration. Once you get here, if you have an existing EFTPS account, you'd probably make a payment.
In our case, we want to go through and enroll so I'm going to go ahead and enroll. I'm going to let them know that I'm registering as a business. If I were an individual sole proprietorship, I'd register that way. I'll register as a business. Now it's going to want my EIN along with the business name, my personal name, et cetera. Let me go through and fill out this form.
Alright, now once we've filled out the basic information, we'll have to put in our bank account information. The reason for this is that as we file payroll taxes, the taxes are going to be electronically withdrawn from our bank account. You'll probably want to put in your bank account number and your routing number here. The alternative is to have your financial institution initiate the transaction. Now, once we've done all that we'll go ahead and agree to the authorizations and agree to have our funds withdrawn from our bank account each quarter.
We'll go ahead and put in our name. In this case I'm just using John Smith for our purposes. Put in the EIN again, accept the authorizations and then we'll be all set with our first EFTPS number. If you have separate EINs for different business organizations, you'll want to set up separate EFTPS accounts. Now you've seen how easy it is to get an EIN and EFTPS account and start minimizing the work and risk associated with filing your business taxes.
- Quarterly business taxes at the federal and state levels
- Annual taxes at the federal and state level
- Monthly taxes at the state level
- Using a SEP account to reduce your annual taxes
- Determining if you qualify for the pass-through tax break