EFT FREQUENTLY ASKED QUESTIONS
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
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.
||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 Credittransactions 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) 292-9292 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:
My Employer Gross Income tax is remitted through a payroll service. Do I still have to comply with the EFT Program?
- Voided Check
- Bank Statement w/Bank Account
- Spec. Sheet (Specification)
- Letter from your financial
- Deposit Slip
You are in compliance and the filing of an Authorization Agreement is not necessary as long as:
Gross Income (GIT-ER) tax is the only tax your business
remits to the Division, and
||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'sliability threshold or my company has ceased operations?
Waiver requests should be addressed to the unit at:
New Jersey Division of Revenue
PO Box 191
Trenton, NJ 08646-0191