EFTPS and 941 forms for Payroll liabilities

[xroads_natalie]

Anybody using EFTPS for payroll liabilities? I'm still taking a check to the bank to process our Federal, Social Security and Medicare withholding. I suspect this option may be obsolete in the not-too-distant future.

My holdup is, what's the best way to reflect an online payment in PC? I'm thinking create an invoice in AP, and print the "check" on blank paper. Would I need a dummy check number?

Oh, and is there any way to use PC to prepare the quarterly tax return reporting these liabilities and payments (Form 941)? I'm doing it by hand now.


Thanks for any insight.

Natalie

[tborgal]

I use EFTPS and use a manual check to record the payment. Works great. Don't know if you are familiar with the procedure but they want total SS and total Medicare - employee and employer - lumped together when you enter it.

Version 11 will have a 941 report which will make it mush easier to file the report. You will still have to enter the data but it is all in the report in the order it needs to be entered. I have downloaded a PDF of the 941 from the IRS web site and use that to enter my information then print it out. Neat and clean. I am sure that some day you will be able to file the 941 on line as well.

[beas]

I use EFTPS and our Oregon EFT system to do these deposits. Very easy and just like Tom, I just enter them as manual checks. I use check numbers that tell me what it was and what month, like FED 10/09 is the deposit for EFTPS for October of 2009. With EFTPS you can also schedule when the payment is made. So if you are a monthly depositor, for instance, you can schedule it for the 15th of the next month or whatever you want to do. Here's some info from the IRS for signing up: "To enroll in EFTPS, call 800–555–4477, or to enroll online, visit http://www.eftps.gov. For general information about EFTPS, call 800–829–1040 for individuals or 800–829–4933 for businesses."

FWIW, I also use the SSA's BSO website to do all of my W-2's at the end of the year. You can print them as many times as you want and you can file them electronically. Very handy. I've been using it for several years. If you are thinking about doing this, you need to start the process since they do the setup using snail mail and it takes a bit of time.

BTW, you are correct about using the bank in the future. Depositors who had more than $200,000 in the prior year are already required to use EFTPS.

Hope this is helpful.

[debbie]

I just use "Enter Transactions" from Fund Accting.
In Ref./check no. box, I enter EFTPS and for the Transaction descrip., I enter IRS Dept of Treasury. For the Line Description, I enter ____ Qtr. Payroll Taxes. I always print the confirmation page from the IRS site after paying and keep it along with a report from PC using Selected Transactions.

[NeilZ]

I just use "Enter Transactions" from Fund Accting.
In Ref./check no. box, I enter EFTPS and for the Transaction descrip., I enter IRS Dept of Treasury. For the Line Description, I enter ____ Qtr. Payroll Taxes. I always print the confirmation page from the IRS site after paying and keep it along with a report from PC using Selected Transactions.

Just wondering why you're doing this if you're already using the Payroll module ??

[tborgal]

Neil,

To my knowledge you can not record payments to the IRS for payroll taxes withheld from employees within the Payroll Module. Although I do not subscribe to the way Debbie is recording these payments it works. I prefer to use the Accounts Payable module using the IRS as the vendor. This way I can query the vendor activity report to verify that I have made the payments.

[debbie]

I didn't know you could record payments to the IRS for payroll taxes withheld from employees within the Payroll Module either. I can verify the info by running an account activity report for federal withholding.

I haven't had any problems doing it this way. Is this a problem?

[tborgal]

I haven't had any problems doing it this way. Is this a problem?

Not as far as I know. It would be nothing more than personal preference in my opinion.

[NeilZ]

Neil,

To my knowledge you can not record payments to the IRS for payroll taxes withheld from employees within the Payroll Module. Although I do not subscribe to the way Debbie is recording these payments it works. I prefer to use the Accounts Payable module using the IRS as the vendor. This way I can query the vendor activity report to verify that I have made the payments.

DOH . . I read the original post wrong ... I read it as she was manually entering the amounts in the liability account.

Nevermind