EFTPS is short for Electronic Federal Tax Payment System. It is a free service offered by the U.S. Department of the Treasury that allows you to pay federal taxes online or over the phone.

The Electronic Federal Tax Payment System (EFTPS) is a service provided by the U.S. Department of the Treasury. The service allows taxpayers to make tax payments either by telephone or online. EFTPS can be utilized by corporations or individuals seeking to make payments on personal income taxes.

You can use the Electronic Federal Tax Payment System to pay all federal taxes. The following payments are common to small business owners.

• Estimated taxes: Unlike an employee, income taxes are not withheld from your salary. You must make estimated tax payments for your federal income tax liability. You can pay estimated taxes weekly, monthly, or quarterly using EFTPS.
• Self-employment tax: Social Security and Medicare taxes are not automatically withheld from your salary. You must pay self-employment tax unless you are incorporated, which combines Social Security and Medicare taxes.
• Payroll taxes: If you are an employer, you must withhold and remit income taxes from your employees’ wages. You also withhold employee portions of FICA tax from employee wages. FICA tax includes Social Security and Medicare taxes. You pay a matching amount of FICA tax for employee wages. You must also pay federal unemployment tax. You can use EFTPS to pay and remit FICA, income, and federal unemployment tax liabilities. A payroll service can use your EFTPS account to pay taxes for you.
• Corporate taxes: If your business is is a corporation, you can use EFTPS to pay federal corporate taxes.
• Excise tax: The government places excise taxes on certain goods, such as gasoline and alcohol. You do not directly pay excise taxes. Instead, you collect the tax from customers when you sell the applicable goods. You can use EFTPS to pay federal excise taxes online.