Monitoring outsourced payroll duties on EFTPS

Monitoring outsourced payroll duties on EFTPS

Many employers hire third-party payroll service providers to perform their payroll processing functions and tax-related duties, including making employment tax deposits.

The employer, generally, remains liable for any unpaid employment taxes, including any penalties and interest resulting from any underpayment, even if they use a third-party payroll service provider.

Note, this may not apply to employers using Certified Professional Employer Organizations (CPEO).

To ensure an employer’s third-party payroll service provider makes accurate and timely federal tax deposits, employers should monitor deposits made on their behalf for accuracy and timeliness.

Using an EFTPS Inquiry PIN to monitor tax deposits

Third-party payroll service providers who make tax deposits and payments on behalf of their client, normally, enroll them in the Electronic Federal Tax Payment System via the payroll provider’s EFTPS account by using the client’s EIN. This allows the third-party payroll service provider to make deposits using the client employer’s EIN.

When third-party payroll service providers enroll client employers in EFTPS, an EFTPS Inquiry PIN may be sent to the employer. Client employers who have deposits made on their EFTPS account during the prior 12 months may also receive Inquiry PINs. An Inquiry PIN allows the employer to verify their third-party provider is making timely and accurate federal tax deposits.

The benefits of creating a separate EFTPS account

While many employers use an Inquiry PIN to monitor deposits made on their behalf, others may want to separately enroll and create their own EFTPS account. Creating an EFTPS account allows the employer to not only monitor tax deposits but also:

  • Set up reminders,
    • Make tax deposits and payments on their own,
    • Make up any missed tax deposits and payments and
    • Keep making tax deposits and payments if they change payroll service providers.

Setting up EFTPS notifications

Whether an employer chooses to use an Inquiry PIN, or to create their own EFTPS account, the employer can also sign up and enroll to receive email notifications about their account’s activities. Access to this feature requires a PIN and password.

Once an employer opts in for email notifications, the employer will receive notifications about their deposits and payments submitted, including those made by their payroll service provider.

Email notification messages show:

  • Payments scheduled,
    • Payment cancellation,
    • Returned payments and
    • Reminders of scheduled payments.

Email notifications only allow one email address per taxpayer. If the email address changes, a message regarding the change is sent to both the old and new addresses.

Employers can cancel email notifications at any time.

Find more information by watching Monitoring your outsourced payroll duties on EFTPS and by visiting


“If you can't figure it out, figure out a "work-around!" The NestEggg Group was founded with a firm belief that working exclusively with professional firms to help them see past their history into the potential of their futures. Your potential is limited only by your creativity. Jeff's business purpose— “why”—centers on changing results through viewing things in new ways. He expounds: “Changing our results requires changing our actions. Because what we do proves what we believe, only when we change our beliefs can we progress. New insights are what cause us to shift our beliefs.” So what results do you want to attain? Call Jeffrey (1-888-987-NEST) when it’s time for progress. About Robert "Jeffrey" Wolter, President The NestEggg Group, Inc & EgggsAct Tax, Inc. & Managing Member NestEggg Investment Advisors Jeffrey is a common sense and productivity strategist. He facilitates and teaches about growth, positioning, and pricing strategies; leadership; operations; business communications and philanthropy. What he does best—differently from others—is energize people while he shows them how to solve business effectiveness. He clarifies the intricate, huts new light. He encourages hope. He sets you up to make development possible. Jeffrey is recognized for his original ideas and success with practical implementation, even as he challenges the "norm". Jeffery is a skilled facilitator. His deep knowledge of his firm(s) operations and ability to understand the intricacies of All of his clients, gives way to sharp observation skills allow his grasp a firm’s nuances quickly. He then guides firm owners and their teams on their unique paths toward improved profitability, smoother operations, stronger cultures and how and when to give back. Since 1998, he's helped more than 5,024 QuickBooks users and business owners achieve results such as: expanding revenues, attracting and inspiring talent, aligning operations with long-term objectives, discovering and leveraging their differentiation, substantially increasing sales and proposal results, strengthening relationships with their clients, and finding more joy in their work. His 25+ year career background includes roles as entrepreneur, finance director, board of director for several nonprofit, creative business development, insurances agency owner, Wealth Management Firm owner, editor, Tax Specialist, Accounting Director, Mediator and more. Before creating his firm in 2007, Jeffrey was an accountant for several well know local firms and individuals. After building a successful accounting practice, he became intrigued and inspired by the uniqueness of how Insurance, Investment's/Wealth Management, Taxes and Accounting/Bookkeeping all tend to work together, he branched out and created his list of Affiliate Companies in 2012 & 2013 In 2013, joined the Intuit Accountants Council and has assisted in the continued enhancement of the popular QuickBooks (Desktop and Online versions) and did so until late 2015. In 2014 with the legalization of Marijuana, Jeff and his team have committed themselves to knowing as much about the industry and being there to offer Cannabis Compliant, Accounting, Tax & Insurance to business owners that have or need help in keeping in with the Federal government's "280E"
Contact Us

Send us an email and we'll get back to you, asap.

Not readable? Change text.