ELECTRONIC FUNDS TRANSFER OVERVIEW
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 over 364,102 registered participants.
All businesses who wish 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.
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
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 - This method provides for the transfer of funds by authorizing 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 - 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.
You may voluntarily participate in the EFT Program and take advantage of quick, easy, and reliable payments of tax liabilities. simply contact the Division by telephone at (609) 292-9292 Opt #6, FAX (609) 984-6681, 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.
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.