EFTPS Guide for Employers: Enrollment, Deadlines & How to Pay

Employers are required to make federal payroll tax deposits through EFTPS (Electronic Federal Tax Payment System) — missing a deadline by even one day triggers penalties. As a Kansas employer, you have federal deposits via EFTPS, and depending on your state, you may also have separate state tax deposits through your state's tax agency. This guide covers everything you need to know about EFTPS.

What Is EFTPS?

EFTPS (Electronic Federal Tax Payment System) is the IRS's free online portal at eftps.gov for making federal tax payments. It is the required channel for federal payroll tax deposits — no paper check alternative exists for most employers. Federal taxes deposited through EFTPS include: employee income tax withholding, Social Security (6.2% + 6.2%), Medicare (1.45% + 1.45%), Additional Medicare Tax, and FUTA (Form 940).

How to Enroll in EFTPS

1. Go to eftps.gov and click Enrollment, then select Business.
2. Enter your EIN, business name, address, and bank account/routing number.
3. Submit. The IRS mails a PIN to your business address within 5–7 business days.
4. When the PIN arrives, return to eftps.gov, enter the PIN, and create a password.
5. Your account is now active. Enroll immediately after getting your EIN — not when a payment is due.

Monthly vs. Semi-Weekly Depositors

The IRS Lookback Period

Your deposit schedule is determined by total Form 941 tax liability during the 12-month lookback period ending June 30 of the prior year. For 2026: July 1, 2024 – June 30, 2025. Add line 12 of Form 941 for Q3 2024, Q4 2024, Q1 2025, and Q2 2025. Total ≤ $50,000 = monthly. Total > $50,000 = semi-weekly. Your schedule is locked for the entire calendar year.

The $100,000 Next-Day Deposit Rule

If your accumulated undeposited tax liability reaches $100,000 on any single day, you must deposit it by the next business day regardless of your assigned schedule. Monthly depositors who trigger this rule are automatically converted to semi-weekly for the rest of that year and all of the next year.

How to Make a Payment in EFTPS

1. Log in at eftps.gov with your EIN and password.
2. Click Make a Payment and select the tax form (941 for payroll, 940 for FUTA).
3. Select the tax period and enter the payment amount.
4. Set the payment date — must be at least one business day before the due date.
5. Confirm and save the confirmation number.

Penalties for Late EFTPS Deposits

The IRS First Time Penalty Abatement (FTA) program can waive the first late-deposit penalty if you have a clean compliance history. Call the IRS and request abatement.

Kansas State Tax Deposits: Separate from EFTPS

EFTPS only covers federal taxes. Depending on your state, you may have a second deposit obligation for state income tax withholding, submitted through your state's own tax agency portal — entirely separate from EFTPS. Deposit frequency, thresholds, and due dates are set by that agency, not the IRS. Some states have no personal income tax at all, in which case there is no state withholding deposit to make, only state unemployment insurance.

Failing to deposit state withholding on time (where it applies) triggers separate state penalties on top of any IRS penalties for missed federal deposits. Payroll software that supports Kansas can handle both federal and state deposits automatically.

Frequently Asked Questions

What is EFTPS and do I have to use it?

EFTPS is the IRS's free online system for making federal tax deposits. Since 2011, virtually all employers must deposit electronically. If you have employees and owe federal payroll taxes, you must use EFTPS or have a payroll processor make deposits on your behalf.

How do I enroll in EFTPS?

Go to eftps.gov and click Enrollment. You will need your EIN, bank account and routing number, and business address. The IRS mails a PIN within 5-7 business days. Return to eftps.gov, enter the PIN, create a password, and your account is active.

What is the difference between a monthly and semi-weekly depositor?

Monthly depositors had $50,000 or less in payroll tax liability during the IRS lookback period and deposit by the 15th of the following month. Semi-weekly depositors had more than $50,000 in liability and must deposit within 3 business days after each payday. New employers start as monthly depositors.

What happens if I miss an EFTPS deposit deadline?

The IRS failure-to-deposit penalty is tiered: 2% for 1-5 days late, 5% for 6-15 days late, 10% for more than 15 days late, and 15% if still undeposited more than 10 days after the IRS sends a notice. The IRS First Time Penalty Abatement program may waive the first penalty for employers with a clean history.

Can payroll software handle EFTPS deposits for me?

Yes. Payroll software like Gusto makes federal tax deposits automatically through EFTPS after each payroll run. You remain legally responsible if a deposit is missed, so using reputable software matters.

Let Payroll Software Handle EFTPS for You

Payroll software like Gusto handles the entire deposit workflow automatically: it calculates taxes after each payroll, schedules the EFTPS payment for the correct due date, and keeps your deposit schedule synced with the lookback period. Most Kansas small business owners who start doing payroll manually eventually switch after missing one deadline and paying a penalty.