In recognition of the 40th anniversary of Earth Day, the U.S. Department of the Treasury announced recently that it will begin implementing a three-pronged initiative to increase the number of electronic transactions between Treasury and the public. In addition to greatly reducing costs, enhancing customer service and minimizing Treasury’s environmental impact, the move from paper to electronic transactions will increase reliability, safety and security for benefit recipients and taxpayers.
One of these initiatives includes changes for businesses with deposit requirements. The term “business” includes all employers, including agricultural employers. They will soon be required to pay electronically through the Electronic Federal Tax Payment System. The Federal Reserve Bank will receive the last paper Federal Tax Deposit on Dec. 31, 2010.
An exception will be made for businesses that have $2,500 or less in quarterly tax liabilities that pay their payroll taxes when filing the payroll tax return. Employers that currently use paper deposit coupons should enroll in EFTPS as soon as possible to be ready for this deadline.
Other initiatives included in Treasury’s approach will require individuals receiving Social Security, Supplemental Security Income, Veterans, Railroad Retirement and Office of Personnel Management benefits to receive payments electronically. Also, the option to purchase paper savings bonds through payroll deductions will be eliminated for federal employees on Sept. 30, 2010 and for the private sector by Jan. 1, 2011.
Give us a call so we can help get your business set up for the required electronic transactions or assist you in making these electronic deposits to allow you more time to concentrate on growing and developing your operation.