Where to Pay Payroll Taxes Online

The IRS operates EFTPS (Electronic Federal Tax Payment System), which is the official online channel for paying federal payroll taxes. You can also pay through your business bank's bill pay system if your bank has partnered with the IRS, or through a third-party payroll processor like ADP, Gusto, or Paychex if you use one of those services. Each route connects to the same IRS account, so the method you choose depends on what system you already use.

State payroll taxes are paid separately through your state's revenue or tax department website. Every state has its own portal — there is no single national system for state withholding. You will need to find your specific state's site and set up an account there. Some payroll processors can handle state payments too, but you should verify this before relying on it.

Local payroll taxes (city or county income tax, if your location has them) are also paid separately, usually through your city or county tax office website. Check with your local tax authority to confirm the payment portal and any account setup requirements.

Key Takeaways

  • EFTPS is the IRS's official system for federal payroll tax payments and requires you to enroll in advance — enrollment takes one to two business days.
  • You can also pay federal taxes through your bank's bill pay system or through a payroll processor, but EFTPS is the most direct route.
  • State and local payroll taxes are paid through separate portals run by your state and local tax authorities, not through EFTPS.
  • Payment deadlines depend on your payroll schedule and tax liability; monthly filers typically pay by the 15th of the following month, but semi-weekly filers have different dates.

Setting Up EFTPS for the First Time

Go to eftps.gov and select "Enroll Now" to create an account. You will need your Employer Identification Number (EIN), Social Security Number (if you are a sole proprietor), business name, and mailing address. The IRS will send you a PIN by mail within one to two business days — you cannot make payments until you receive this PIN.

Once your PIN arrives, log back into EFTPS, enter the PIN, and you can schedule payments immediately. The system allows you to schedule payments up to 120 days in advance, so you can set up multiple payroll tax payments at once if you want to.

If you are using your bank's bill pay system instead, contact your bank to confirm they offer IRS payment routing. Not all banks do. You will still need your EIN and the correct IRS payment address, which your bank should provide in their bill pay setup.

How to Schedule a Payment on EFTPS

Log into your EFTPS account and select "Make a Payment." You will choose the tax type (941 for federal income and Social Security withholding, 940 for federal unemployment tax, 943 for agricultural employees, or 944 if you file annually). Enter the amount you owe and the payment date. The payment date must be at least one business day before your actual tax deadline.

EFTPS will show you a confirmation number immediately. The money will leave your bank account on the date you selected. The IRS receives the payment electronically and posts it to your account within one business day. Keep the confirmation number for your records — it proves you paid on time.

If you miss a deadline, you can still pay online, but you will owe penalties and interest. The sooner you pay after the deadline, the lower the interest accrual. Do not wait.

Payment Deadlines and Schedules

Federal payroll tax deadlines depend on your deposit schedule, which the IRS assigns based on your total tax liability in a lookback period. Most small businesses are monthly depositors, meaning taxes are due by the 15th of the following month. Some larger businesses are semi-weekly depositors, with payments due on Wednesdays or Fridays depending on which days you paid employees.

The IRS publishes a deposit schedule each year. You can find yours by logging into your EFTPS account or by checking your most recent Form 941 (Employer's Quarterly Federal Tax Return). If you are unsure, contact the IRS at 800-829-1040.

State and local deadlines vary widely. Some states follow the federal monthly schedule; others require quarterly or annual payments. Check your state revenue department's website for the exact dates. Many payroll processors will alert you to upcoming deadlines if you use their system.

Paying Through a Payroll Processor

If you use ADP, Gusto, Paychex, or a similar service, the processor can file and pay your payroll taxes on your behalf. You do not log into EFTPS yourself — the processor handles it. You simply review the amounts in your payroll software and approve the payment. The processor charges a fee for this service, usually between $5 and $15 per payment.

Payroll processors can handle federal, state, and sometimes local taxes in one place. This is convenient if you operate in multiple states or have complex withholding. However, you remain responsible for the accuracy of the amounts, so review your payroll reports before each payment is sent.

If you switch processors, make sure the new one has access to your EFTPS account or can set up a new one. There should be no gap in payments during the transition.

What Happens If You Pay Late or Incorrectly

The IRS charges a failure-to-pay penalty of 0.5% of the unpaid tax per month, up to 25%, plus interest that compounds daily. If you pay more than 60 days late, the penalty increases to 1% per month. Interest rates change quarterly and are published by the IRS; as of 2024, the rate is 8% annually, but this varies.

If you overpay, the IRS will either refund the excess or credit it toward your next tax liability. You can request a refund by filing an amended return (Form 941-X for quarterly corrections) or by requesting it in writing. Refunds typically take four to six weeks.

If you underpay, the IRS will send you a notice showing the shortfall, penalties, and interest owed. You can pay this notice online through EFTPS or through the IRS payment portal at irs.gov/payments. Do not ignore it — the penalties grow each month you delay.

Frequently Asked Questions

Can I pay payroll taxes with a credit card?

No. EFTPS, bank bill pay, and payroll processors all require payment from a bank account. The IRS does not accept credit card payments for payroll taxes. Some third-party payment processors will accept a credit card and then transfer the funds to your bank account, but they charge a 2% to 3% fee on top of the tax amount.

What if I pay the wrong amount?

If you overpay, the IRS credits the excess to your next tax period or refunds it if you request one. If you underpay, you will receive a notice with the shortfall and penalties. You can pay the difference immediately through EFTPS to stop interest from accruing further.

Do I need to enroll in EFTPS if my bank offers bill pay?

No. If your bank has an IRS payment option in bill pay, you can use that instead of EFTPS. However, EFTPS is the most direct system and works with any bank, so many businesses use it as their primary method. You can use both if you want.

How far in advance can I schedule payments?

EFTPS allows you to schedule payments up to 120 days in advance. This means you can set up all your quarterly or annual payments at the start of the year if you want. The payment must be scheduled for at least one business day before the deadline.

What if I have employees in multiple states?

You must pay each state's payroll taxes through that state's portal. EFTPS handles only federal taxes. A payroll processor can often manage multiple state payments in one system, which is simpler than logging into each state's site separately. Confirm this with your processor before hiring out of state.