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What is an EFT payment?
An Electronic Funds Transfer (EFT)
payment enables taxpayers to remit tax payments electronically
instead of producing and mailing a check. It is a safe and efficient
system that allows payments from taxpayers' accounts to move
into the State Treasury almost immediately, helping to ensure
that payments are received by the due date.
Who is required to pay taxes
by EFT? Do I have a choice whether to file electronically or by check?
Effective July 1, 2004 under P.L.
2004, c. 52, taxpayers with a prior year liability of $10,000 or more
in any one tax are required to remit payments for all taxes to the
Division using EFT.
Can I participate on a voluntary
basis?
Yes, you may choose to voluntarily
submit payments via EFT. To enroll in the program, you may contact
the EFT Technical Services Unit at (609) 984-9830 or the Division
of Taxation’s Hotline at (609) 292-6400 for instructions. Once enrolled
in the program, you must continue to make payments by EFT unless you
notify the Director in writing 60 days prior to withdrawal from voluntary
participation.
Will I be notified when I meet
the requirements?
If you meet the statutory requirements
for participation in the EFT Program, the Division will notify you.
You then must complete
an Authorization Agreement for Electronic Funds Transfer worksheet
(Form EFT-1C or EFT-1D) within 60 days. Detailed payment instructions
will be mailed to you after the Division receives and processes your
completed EFT application. Online
registration is available to businesses required to make EFT payments
and who choose the ACH Debit method.
Are there different payment
methods?
There are two methods
that can be used when making electronic payments: the Automated
Clearing House Debit (ACH Debit) and the Automatic Clearing
House Credit (ACH Credit).
Please note that
FED Wires or wire transfers are not acceptable methods of EFT
payment.
ACH Debit Option
The ACH Debit method
allows you to transfer funds by authorizing the State to electronically
debit your bank account for the amount that you report to the
State. This method of payment is safe, simple and convenient.
All the processing costs are paid by the State. The ACH Debit
method is a two-step process.
| 1. |
You initiate the process either online
or by making a toll-free telephone call to a data collection service
and provide the appropriate security and tax payment information. |
| 2. | The information supplied to the data collection
service is passed to the State's financial institution at the
end of the day prior to the date you authorized. |
Prior to the first transfer, the
Division of Revenue must supply the data collection service with information
on the taxpayers that will be calling. The information will include
your tax identification number and the bank account number from which
your payment will be withdrawn.
ACH Credit Option
The ACH Credit option
allows you to transfer funds by instructing your bank. In order
to report your tax payment correctly, your bank must originate
your payments using the Cash Concentration or Disbursement plus
Tax Payment Addendum (CCD+/TXP) format. Your bank should be
familiar with this format.
The ACH Credit
Option should be of interest to those businesses that are already
using EFT to make other business payments. To initiate an ACH
Credit, you must first be set up to do so with your bank. If
you wish to pursue this option, we recommend that you contact
your bank to determine what ACH origination services they offer
and the costs of ACH Credit service. As the originator of the
ACH Transaction, the cost of each transaction is charged to
you.
Am I required to pay a service
charge?
For ACH Credit, you must pay the
fees charged by your bank for any set up costs and for ACH Credit
transactions initiated. For ACH Debit, all the processing costs are
paid by the State.
How can you be sure that your
payments have been made? Do I get any kind of receipt after I have
transmitted electronically?
Your EFT payments will appear
on the account statement you receive from your bank. Remember, you
must have sufficient funds available to complete the EFT transaction.
When do I begin EFT payments?
Do not attempt any EFT transaction
until the Division notifies you by sending a packet of operating instructions
for the option that you have chosen, ACH Credit or ACH Debit.
Do I have to pay all my taxes
collected by the Division of Revenue using electronic funds transfer?
Yes. Once you are required to
pay by electronic funds, you must remit all taxes to the Division
of Revenue using EFT. In addition, this program is separate
from the Federal EFTPS program. (If you are a voluntary participant,
you do not have to remit all taxes electronically.)
What is my New Jersey Registration
Number?
Your New Jersey Registration
Number is a 12-digit number that has been assigned by the Division
of Revenue. In most cases, the number is your 9-digit Federal
Identification number plus 3 zeros. The
taxpayer ID number should not be masked, i.e., there should
not be any spaces, dashes/slashes or alpha characters.
If you need more detailed information about this number, you
should contact the Client Registration Unit at (609) 292-1730
for assistance.
What is a transit routing number?
This 9-digit number identifies
your financial institution.
Who should be the contact person?
The contact should always be a
person employed by the business that can discuss any matters related
to the company and the appropriate tax with Division personnel.
What forms of bank verification
are acceptable for the bank account(s) that I want debited?
Any of the following forms of
bank verification are acceptable:
- Voided Check
- Bank Statement w/Bank Account
Number
- Spec. Sheet (Specification)
- Letter from your financial
institution
- Deposit Slip
My Employer Gross Income tax is
remitted through a payroll service. Do I still have to comply with the
EFT Program?
You are in compliance and
the filing of an Authorization Agreement is not necessary as
long as:
| 1. |
Your Employer
Gross Income (GIT-ER) tax is the only tax your business
remits to the Division, and |
| 2. |
Your payroll
service is remitting your GIT-ER tax electronically. |
Otherwise, you need to comply by
selecting the method of payment (ACH Credit or ACH Debit) for all other
taxes collected by the Division of Revenue. Can
I use both methods of payment (ACH Credit and ACH Debit) at the same
time for remitting our tax payments electronically to the State of
New Jersey?
No. Whichever method (ACH Credit
or ACH Debit) a taxpayer chooses to complying with its EFT requirements,
the taxpayer should also use the same method for payment of all the
types of taxes it is required to pay by EFT.
If I have received a PIN for
filing my ST-50 online, can I begin to use EFT?
No. This PIN is only for filing
your ST-50 return. You must be registered with the EFT unit before
you make payments via EFT.
Whom do I address for a wavier
request from the EFT Program if my company did not meet last year's
liability threshold or my company has ceased operations?
Waiver requests should be addressed
to the unit at:
New Jersey Division
of Revenue
EFT Unit
PO Box 191
Trenton, NJ 08646-0191
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