PayYes

Enacted as part of the North American Free Trade Act (NAFTA), the Electronic Federal Tax Payment System (EFTPS) mandates the use of electronic fund transfers for making federal payroll, business income, and excise tax deposits. While providing business taxpayers with flexible payment option, EFTPS speeds the flow of funds to the U.S. Treasury for faster government use.

You should contact your PayYes Client Service Representative (CSR). You can either put through an adjustment with your next payroll or issue a manual check from your bank account and note the difference as an adjustment with your next payroll. The original check should be voided or stopped and returned to your CSR.

PayYes Check offers you payroll checks written on an PayYes account - freeing you from the burden of reconciling your payroll account each month; eliminating the tedious task of signing and stuffing checks; and ending the need to contact multiple sources to issue stop payments or make other payroll inquiries.

PayYes generates an ACH debit to charge your account for the net cash total of the PayYes Checks. Our account shall generally be credited two days prior to your payroll check date.

All federal employment and other depository tax payments must be made using the Electronic Federal Tax Payment System (EFTPS):

-Quarterly Federal Excise Tax (Form 720)
-Employer's Annual Federal Unemployment Tax (Form 940)
-Employer's Quarterly Federal Tax (Form 941)
-Employer's Annual Tax Return for Agricultural Employees (Form 943)
-Annual Return of Withheld Federal Income Tax (Form 945)
-U.S. Corporation Income Tax (Form 1120)
-Farmer's Cooperative Association Income Tax (Form 990C)
-Employer's Annual Railroad Retirement and Unemployment (Form CT-1)
-Return of Private Foundation (Form 990PF)
-Exempt Organization Business Income Tax (Form 990T)
-Annual Withholding Tax Return for U.S. Source Income of Foreign Persons (Form 1042)

Once mandated, you must continue to use the electronic system - even if your tax liability falls below a mandated threshold. In fact, effective with your July 1, 1999 tax liabilities, you will be subject to substantial penalties (10%) by the Internal Revenue Service (IRS) on any payment that is not made in compliance with the Electronic Federal Tax Payment System (EFTPS).

ACH debit payments must be initiated through the federal government's Financial Agent by 8:00 p.m., Eastern Time (ET), on the business day prior to due date. ACH credit payment deadlines are set by the depository institution, which initiates the payments. If you wish to initiate ACH credit payments, you must contact your bank to obtain its cut-off time. In any case, the payment must be initiated no later than the business day before it is due.

Businesses should allow 10 weeks to enroll, although, according to the Internal Revenue Service (IRS), it generally takes four to six weeks.

The Internal Revenue Service (IRS) does not charge fees in connection with electronic payments. There may be, however, a bank-related fee associated with ACH processing. Charges for the use of FEDWIRE will also vary, so consult with your individual financial institution.

Your account will be debited two days prior to the check date of your payroll. If you process a payroll with a tax liability of $100,000 or more, PayYes will debit the payroll taxes the day after the payroll is processed regardless of the check date. This will enable PayYes to meet the federal guidelines of depositing these taxes the day after your check date.