The Employment Tax e-file System offers an improved way to file Forms 940, 941, and 944 electronically, in an XML format only. The Employment Tax e-file System offers new features and greater flexibility for filing employment tax returns.
Features of the System
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More Filing Options - The Employment Tax e-file System accepts the following forms and schedules:
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More Flexible Filing - Forms 940, 941 and 944 can now be filed in a single transmission file.
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More Explicit Error Conditions - New error conditions pinpoint the location of the error in the transmission, and provide complete information for each error identified.
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Faster Acknowledgements - Transmissions are processed upon receipt and acknowledgements are returned in near real-time. No more waiting for once or twice daily system processing cycles.
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Integrated Payment Option - Owe Taxes? - You can e-file a balance due return and, at the same time, authorize an electronic funds withdrawal from your bank account or pay by credit card. Payments are subject to limitations of the Federal Tax Deposit Rules.
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Completely Electronic Signature Process - Taxpayers and Reporting Agents can continue to sign their returns with their own IRS issued Personal Identification Number (PIN).
Who Can Participate
Taxpayers
For the purposes of the Employment Tax e-file System, a taxpayer is any business entity that has employees, and has a requirement to file any of the Form 940, 941 or Form 944 family of returns with the IRS. Taxpayers do not file directly to the IRS, but may use the services of an Electronic Return Originator (ERO), Reporting Agent, or a third-party transmitter.
An Electronic Return Originator is any entity that "originates" the electronic submission of tax returns to the IRS. EROs are identified by an Electronic Filer Identification Number (EFIN). An ERO does not originate its own employment tax returns (Form 94x family); a third-party provider must be used for this purpose.
Reporting Agents
An accounting service, franchiser, bank, (or other person that complies with Rev. Proc. 2003-69, as modified by Rev. Proc. 2005-60 and is authorized to prepare and electronically file Forms 940, 941, and 944 for a taxpayer). Reporting Agents can sign all of the electronic returns they file with a single PIN signature.
Third Party Transmitters
A firm, organization, or individual that receives electronic return data from taxpayers, ERO's, and Reporting Agents may reformat the data (if necessary), batch it with returns from other filers, and transmit the data to the IRS.
Software Developers
Companies that develop software for their own use, or commercial sale for the purpose of electronically filing employment tax returns the software must pass an Assurance Testing process prior to being approved for e-filing.
How to Participate
Prospective participants must first complete and submit an IRS e-file application. You can complete the IRS e-file application online after registering for e-services. Additional guidance can be found in Publication 3112. Follow the instructions provided to complete your application.
NOTE: If you or your organization participates in more than one of the IRS e-file for Business programs, you should submit a single IRS e-file application which includes all of the return types you plan to file. This will help expedite the processing of your application.
Your application for the Employment Tax e-file System must be completed to meet the following deadlines:
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Assurance Testing – December 12, 2008
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Production Filing – January 5, 2009
If you have questions, or require assistance completing the IRS e-file application, please contact the e-file Help desk at 1-866-255-0654 (toll-free).
How Returns Are Signed
Electronic Return Originator (ERO)
A Personal Identification Number (PIN) is used as the business filer’s signature. You or your client will register through an approved software provider for a PIN. The software will request information pertaining to your business client. This must be done before filing your client’s return. The IRS will then send the business client the PIN. When the business client receives the PIN, they are ready to file their Forms 940, 941, and 944 electronically.
Payroll Preparation Service
Reporting Agents sign all of the electronic returns they file with a single 5-digit PIN signature.
Business Filers
A PIN is used as your signature. When you register for a PIN through an approved software provider, the software will request information pertaining to your business. Once this information is submitted, the IRS will send you a 10 digit PIN and you will be ready to file your Forms 940, 941, and 944 electronically.
Software Availability
You can find a complete list of software providers which includes links to approved Employment Tax e-file providers on the Approved IRS e-file for Business Providers' page. And, be sure to check the e-file for Business Partners' page where you'll find special offers and discounts.
Frequently Asked Questions about Employment Tax e-file
I was issued a PIN in January 2005 and filed my own return electronically. My business is now growing. Can I go to an Authorized IRS e-file Provider?
Yes.
Do I need a new PIN?
No, A PIN remains active unless it has been reported as compromised.
What should I do if I used my PIN last quarter and now I’ve lost it?
If you’ve lost your PIN you should notify the e-Help Desk at 866-255-0654 (toll-free).
Can I file Form 941's for prior quarters?
Yes. You can file returns for the four (4) prior quarters.
How do I pay my taxes electronically?
There are two methods available to make electronic payments:
Integrated File and Pay - Business filers can e-file and, at the same time, pay the balance due electronically by authorizing an electronic funds withdrawal or by credit card.
Electronic Federal Tax Payment System (EFTPS) – Businesses can make their Employment Tax payments electronically using EFTPS. Visit eftps.gov for more information or call EFTPS Customer Service at 1-800-555-4477.
How do I locate an Authorized IRS e-file Provider to file my return?
Find an Authorized IRS e-file Provider in your area by visiting the e-file Resource Page. You'll need to ask the provider if they file Forms 940, 941, and 944 electronically.
Or, you can find a complete list of business software providers which includes links to approved Employment Tax e-file providers on the Approved IRS e-file for Business Providers' page. And, be sure to check the e-file for Business Partners' page where you'll find special offers and discounts.
Where Can I Find Additional Information?
You’ll find additional information on the Employment Tax e-file System on the 94x XML Developers' Forum page. The 94x XML Developers' Forum provides a single point of reference. The Developers’ Forum contains links to the 94x XML Schemas, Schema Updates, Change Pages, and guides to transmission file construction. You may also view or download Publication 3823, Employment Tax e-file System Implementation & User Guide.
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