California electronic funds transfer requirements.Effective Jan. 1, 1995, California taxpayers will become mandatory participants in an Electronic Funds Transfer See EFT.
(application, communications) electronic funds transfer - (EFT, EFTS, - system) Transfer of money initiated through electronic terminal, automated teller machine, computer, telephone, or magnetic tape. (EFT eft: see newt.
(Electronic Funds Transfer) The transfer of money from one account to another by computer. See ACH.
EFT - electronic funds transfer ) program if specified thresholds are reached. See the chart on page 282. Taxpayers also may apply for voluntary participation in any of these EFT programs.
* Franchise Tax Board: Once a taxpayer becomes a mandatory participant in this program, all payments must be remitted by EFT regardless of the type of payment, the amount of the payment or the year involved. Therefore, deficiencies for prior years must also be remitted by EFT.
* Board of Equalization In communications, techniques used to reduce distortion and compensate for signal loss (attenuation) over long distances. : Once a taxpayer becomes a mandatory participant in this program, all payments, except delinquent taxes and related penalties and interest, must be remitted by EFT. Delinquent taxes and related penalties and interest must be paid by cash, cashier's check cashier's check n. a check issued by a bank on its own account for the amount paid to the bank by the purchaser with a named payee, and stating the name of the party purchasing the check (the remitter). , check or money order.
* Employment Development Department: Once a taxpayer becomes a mandatory participant in this program, a.11 disability insurance and personal income tax withholdings must be remitted by EFT. Although not required, taxpayers also may remit To transmit or send. To relinquish or surrender, such as in the case of a fine, punishment, or sentence.
An individual, for example, might remit money to pay bills.
TO REMIT. To annul a fine or forfeiture.
2. their quarterly unemployment insurance and employment training tax payments by EFT.
There are two methods for making EFT payments:
* The automated clearing house See ACH. (ACH (Automated Clearing House) A system of the U.S. Federal Reserve Bank that provides electronic funds transfer (EFT) between banks. It is used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments to ) debit method allows a taxpayer to transfer funds by authorizing the state to electronically debit a bank account for the amount the taxpayer reports to the state's data collector.
* The ACH credit method allows a taxpayer to transfer funds by instructing the taxpayer's financial institution to debit the taxpayer's account and credit the state's bank account.
If a required EFT payment is remitted by other means, such as a check, cash, etc., a penalty of 10% of the amount remitted will be imposed, unless the taxpayer demonstrates reasonable cause for failure to comply with the EFT program.
Notification and registration
* Franchise Tax Board: Taxpayers usually are notified when the threshold is met. An Authorization Agreement for Electronic Funds Transfer (FTB FTB Franchise Tax Board (California; they collect income and sales tax)
FTB Family Tax Benefit (Australian welfare assistance)
FTB First Time Buyer (housing) 3815) must then be filed. The Franchise Tax Board's staff will review this agreement and send the taxpayer a confirmation of the taxpayer's registration to participate in the EFT program.
Caution: EFT payments are mandatory when the threshold is reached even though a corporation does not receive a notice from the Franchise Tax Board.
* Board of Equalization: The Board of Equalization notifies all taxpayers when the threshold is met. An Authorization Agreement for Electronic Funds Transfer (Form BT-555-EFT) must then be filed. The Board of Equalization will send the taxpayer a letter confirming the EFT start date.
* Employment Development Department: The Employment Development Department will review each employer's disability insurance and personal income tax withholding deposits annually, to identify which employers meet requirements for mandatory EFT for the next calendar year. Employers that meet these requirements will be notified before October 31, prior to the year of EFT participation.
To begin remitting tax deposits by EFT, a taxpayer first must file an Authorization Agreement (Form DE 26) for approval to participate in the EFT program. Once the Employment Development Department processes this Authorization Agreement, a letter will be sent to the taxpayer confirming the payment method that the taxpayer selected.
Suggestion: If a taxpayer is close to reaching these thresholds, to avoid potential penalties, it is advisable to call the respective agencies at these telephone numbers to determine if the taxpayer has been notified: Franchise Tax Board (800) 852-2753, Board of Equalization (916) 327-4229 or Employment Development Department (916) 654-9130. From Donald Y. Endo, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , and David G. Halperin, CPA, San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Cal.