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General
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The Electronic Funds
Transfer (EFT) Program provides for the remittance of tax payments
electronically. Many companies are required by law to remit payments
in this manner. Voluntary participation in the EFT program is both
allowed and encouraged.
Anyone who wishes to participate in New Jersey's
EFT Program must first register
with the Division. Currently, there are in excess of 145,000 registered
participants (36,000 mandatory and 109,000 voluntary).
Online Enrollment
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Businesses required to make their tax payments
via the EFT Program may now register online if they choose the ACH
Debit method. An enrollment confirmation number will be provided at
the conclusion of the online process. You will then be sent information
needed to begin making your payments electronically. Soon, businesses
who wish to voluntarily participate in this program will also be able
to enroll online.
Mandatory Participants
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Effective July 1, 2004 under P.L. 2004, c. 52,
taxpayers with a prior year's liability of $10,000 or more in any
one tax are required to remit payments for all taxes electronically
using the EFT Program. The Division annually notifies those taxpayers
that have crossed the threshold in any one tax of their required participation.
The notification includes program information and documents to be
completed. Detailed payment instructions are mailed after receipt
and processing of the enrollment documents.
In addition, pursuant to the Energy Tax Reform
Legislation, (PL 1997, c. 162), all vendors of gas and electricity
are required to remit particular taxes electronically without regard
to any other regulations governing the electronic payment of taxes.
Payment due dates can be affected by bank holidays.
A list of holidays is available
for review.
Methods of Payment
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There are two methods of EFT payments. They are
Automatic Clearing House Debit (ACH Debit) and Automatic Clearing
House Credit (ACH Credit). FED Wires or other
wire transfers are not acceptable methods of EFT payments.
ACH
Debit
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the State to electronically debit your bank account. You authorize
the amount, date, and tax. This method is safe, simple and convenient.
All of the processing costs are paid by the State. This is a
two step process. First, you initiate the process by making
a toll free call providing the appropriate security and tax
payment information. Second, on the day prior to the date you
authorize for the payment, the bank will create an ACH Debit
to your account for settlement the next day. Online EFT
Debit payments may also be made.
ACH
Credit
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This method provides for the transfer of funds by you instructing
your bank to debit your account and credit the State's bank
account. Your bank then originates the payment in a specific
format. That format is the Cash Concentration or disbursement
plus Tax Payment Addendum (CCD+/TXP). It is the standard adopted
for tax payments by the National Automated Clearing House Association
(NACHA). If you wish to utilize this method, you should check
with your financial institution to confirm that they can originate
your payments using this format. Potential ACH Credit taxpayers
should note that there may be both setup fees and per transaction
fees for this method. These fees are not paid by the State but
are paid by the taxpayer.
Volunteer Participants
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You may voluntarily participate in the EFT Program
and take advantage of quick, easy, and reliable payments of tax liabilities.
To enroll,
simply contact the Division by telephone at (609) 984-9830, FAX (609)
292-1777, or write to: New Jersey Division of Revenue, PO Box 191
EFT, Trenton, NJ 08646-0191. We will provide you with the information
you need to begin making your payments electronically.
Online
registration is now available for EFT Debit payments.
Online
Forms -
EFT enrollment and revision
forms are available on the Division of Revenue's forms
page. If you are already an ACH Debit taxpayer, you can add the
Unemployment and Disability Insurance Contributions (UI/DI) to the
taxes you already pay via your EFT account. Or, if you are changing
banks, you may download a revision form and send it to the Division
at the address on the form. The forms and instructions needed to apply
for authorization to make EFT payments by either the ACH Credit option
(EFT1-C) or the ACH Debit option.(EFT1-D) are also available.
Many questions about the
program can be answered by checking our Frequently
Asked Questions Page.
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