The application provides comprehensive ACH/EFT payment capabilities to allow you to submit state and local payroll taxes electronically. Once you've completed the initial setup and received authorization from the jurisdiction, you can use the application to create ACH Credit files, which can be transmitted by your bank, ensuring that your state or local tax payments are received in a timely manner.
The application doesn't create ACH Debit files, but most states do accept these types of tax payments. ACH Debit payments can usually be initiated using the state's website or by telephone.
State and local requirements for authorization
Most states and localities require you to obtain authorization prior to the transmission of ACH Credit or Debit files and will need to provide you with bank routing numbers, bank account numbers, and addenda record formats once you've been approved.
Refer to the following for information on ACH/EFT payments for local withholding: