Break It Up!

Beginning July 1, if your business makes $50,000 or more in 1995 federal employment tax deposits, you must use the Electronic Federal Tax Payment System (EFTPS) to make federal business tax payments. Companies that are not enrolled by July 1 will face a 10 percent penalty.

The Small Business Administration, in partnership with payroll services company Automatic Data Processing (ADP) Inc., is making the transition process easier by sponsoring a series of seminars where small-business owners can learn how to comply with EFTPS regulations.

Seminars will be held nationwide throughout the year. To find out about dates and locations for seminars in your area or to receive the free information packet The EFTPS Transition Kit, call ADP at (800) 225-5237, ext. 5032.

Not sure if your company needs to comply with the new rules? The IRS will notify businesses that are mandated to comply. However, about 5 percent to 10 percent of businesses do not receive IRS mailings due to errors such as incorrect addresses; therefore, you may want to initiate the process yourself. To receive an information package and enrollment application, call the TAXLINK Helpline at (800) 829-5469.

Ginger Lew

SBA Deputy Administrator

This article was originally published in the April 1997 print edition of Entrepreneur with the headline: Break It Up!.