Business EFT FAQ

Business EFT Questions

  1. What is EFT?
  2. What is the difference between the ACH Debit and the ACH Credit options of EFT for business tax payments?
  3. How do I get started to pay my state withholding tax, motor fuel tax and corporation tax payments electronically using EFT ACH Debit or Credit?
  4. My bank is requesting me to provide them with an originator identification number. What is an originator identification number?
  5. My bank account has a block or filter on it. What should I do?
  6. I have registered for EFT and have made several ACH Debit or ACH Credit tax payments, but my bank account has not been debited. What should I do?
  7. Can I submit my EFT application electronically, online?
  8. Once my EFT application has been processed and I begin to make my tax payments electronically using EFT ACH Debit or Credit, do I need to submit corresponding paper tax returns?
  9. Once my EFT application has been processed and I begin to make my tax payments electronically using EFT ACH Debit or Credit, can I change my contact information and/or my bank information?
  10. I made an error when submitting my electronic payment. How can I correct it?
  11. Can I pay pass-through entity (PTE), S corporation, sales and use tax, fiduciary, or admissions and amusement tax payments by EFT?
  12. When do my electronic payments need to be filed to be considered timely?
  13. How can I file a zero return online?
  14. With whom can the EFT Unit discuss my account?
  15. What can I do if I need to make a payment today and I am not set up for EFT?

Business EFT Answers

  1. What is EFT?

    EFT is the abbreviation for Electronic Funds Transfer, a technique used by the banking system to debit and credit bank accounts within a bank or between banks without the exchange of a paper document. EFT allows you to electronically pay your state withholding tax, motor fuel tax and corporation tax payments. EFT payments are voluntary for these three business tax types unless the payment is for $10,000 or more, in which case payments must be made electronically.

  2. What is the difference between the ACH Debit and the ACH Credit options of EFT for business tax payments?

    When you choose to use ACH Debit to pay your Maryland withholding tax, motor fuel tax or corporation tax, you are instructing the state to debit (electronically withdrawal) your tax payment from your designated account. Using a telephone, you designate the amount and date of the transaction, and you receive a five-digit reference code as proof of your transaction before you end the call.

    When you choose to use ACH Credit to pay your Maryland withholding tax, motor fuel tax or corporation tax, you are instructing your bank to credit (electronically send) your tax payment to the state's bank. Using software from your bank, you designate the amount and date of the transaction.

    Beginning August 1, 2013, EFT ACH will no longer be available for sales and use tax payments.

  3. How do I get started to pay my state withholding tax, motor fuel tax and corporation tax payments electronically using EFT ACH Debit or Credit?

    To use the ACH Debit option, complete Sections A and B of Form EFT, Authorization Agreement for Electronic Funds Transfer.

    To use the ACH Credit option, you must first contact your bank to determine if your bank offers ACH origination. Your bank must complete Section C of Form EFT to verify that your bank can conform to these standards. You must also complete the contact person information in Section A.

    Once you have chosen either the ACH Debit or ACH Credit method and completed the pertinent sections on Form EFT, either fax it to 410-260-6214 or mail it to:

    EFT PROGAM
    PO BOX 1509
    ANNAPOLIS MD 21404-1509

    We will process your application within 10 business days after receipt, and you will receive specific instructions for your method of EFT. If you do not receive your instructions within two weeks, please contact the Taxpayer Service Division at 410-260-7980, Monday - Friday, 8:30 a.m. - 4:30 p.m. EST. Hearing impaired users call via Maryland relay at 711.

  4. My bank is requesting me to provide them with an originator identification number. What is an originator identification number?

    An originator identification number identifies the State of Maryland to your bank, so your bank knows that it can allow the electronic payment to proceed. If your bank is requesting an originator identification number, contact the Taxpayer Service Division for instructions. We can be reached by telephone at 410-260-7980, Monday through Friday, 8:30 a.m. - 4:30 p.m. EST.

  5. My bank account has a block or filter on it. What should I do?

    If your bank account has a block or filter on it, you will need to provide your bank with the State of Maryland's Originator Identification Number. An originator identification number identifies the State of Maryland to your bank, so your bank knows that it can allow the electronic payment to proceed. If you need this number, contact taxpayer service for instructions at 410-260-7980, Monday - Friday, 8:30 a.m. - 4:30 p.m. EST.

  6. I have registered for EFT and have made several ACH Debit or ACH Credit tax payments, but my bank account has not been debited. What should I do?

    If the tax payments that you have made using EFT ACH Debit or Credit do not appear to be withdrawn from your bank account within a reasonable amount of time, you may have a security block or filter on your bank account.

    First, contact your bank to see if they are blocking the EFT electronic payment request. If your bank account has a block or filter on it, you will need to provide your bank with the State of Maryland's Originator Identification Number.

    An originator identification number identifies the State of Maryland to your bank, so your bank knows that it can allow the electronic payment to proceed. If you need this number, contact taxpayer service for instructions at 410-260-7980, Monday - Friday, 8:30 a.m. - 4:30 p.m. EST.

    If your bank advises you that they do not have a block or filter on your account, contact taxpayer service for assistance resolving the issue.

  7. Can I submit my EFT application electronically, online?

    No. You must either fax it to 410-260-6214 or mail it to:

    EFT PROGRAM
    PO BOX 1509
    ANNAPOLIS MD 21404-1509
  8. Once my EFT application has been processed and I begin to make my tax payments electronically using EFT ACH Debit or Credit, do I need to submit corresponding paper tax returns?

    If you are submitting state withholding tax, corporation estimated tax or corporation extension tax payments electronically using EFT ACH Debit or Credit, you do not need to submit a paper Form MW506, Form 500D or Form 500E. You will need to submit an annual corporation return (Form 500) and/or an annual withholding reconciliation return (Form MW508), either electronically or by paper, by the due date of the return.

    In addition, if you are submitting state motor fuel tax payments electronically using EFT ACH Debit or Credit, you will need to submit a monthly paper motor fuel report.

  9. Once my EFT application has been processed and I begin to make my tax payments electronically using EFT ACH Debit or Credit, can I change my contact information and/or my bank information?

    Yes, complete a new Form EFT, Authorization Agreement for Electronic Funds Transfer, indicating that it is a revised application by checking the check box titled Revision at the top of the form, and either fax it to 410-260-6214 or mail it to:

    EFT PROGRAM
    PO BOX 1509
    ANNAPOLIS MD 21404-1509

    We will process your application within 10 business days after receipt, and you will receive confirmation in writing that we have completed your revision. If you do not receive your confirmation letter within two weeks, please contact us.

  10. I made an error when submitting my electronic payment. How can I correct it?

    If you made an error while submitting an ACH Credit payment, please either fax an explanation of the error to 410-260-6214 or mail it to:

    EFT PROGRAM
    PO BOX 1509
    ANNAPOLIS MD 21404-1509

    If you made an error while submitting an EFT ACH Debit payment, review your debit instructions and follow the instructions regarding cancellations. If you cancel the payment, you will receive another five-digit confirmation number. If you are unable to cancel the payment, contact taxpayer service at 410-260-7980, Monday - Friday, 8:30 a.m. - 4:30 p.m. EST.

  11. Can I pay pass-through entity (PTE), S corporation, sales and use tax, fiduciary, or admissions and amusement tax payments by EFT?

    No. The EFT payment method is not available for those tax types.

  12. When do my electronic payments need to be filed to be considered timely?

    When you are using EFT ACH Debit or ACH Credit to pay your state withholding tax, motor fuel tax and corporation tax payments, you must submit the payment before 2:00 p.m. EST on the business day prior to the due date. When you are filing free online or using direct debit application to pay and file your state business taxes, you must submit the return and payment before midnight EST on the due date.

  13. How can I file a zero return online?

    You can file a zero return for withholding and sales tax by telephone at 410-260-7225, or online using the Maryland Tax Connect Portal. You can file a zero return for a corporation extension by telephone at 410-260-7829 or online using the corporation extension application.

  14. With whom can the EFT Unit discuss my account?

    The EFT Unit will only discuss your account with the owner, partner, officer or primary EFT contact person that is designated on the Form EFT that you submit. If the primary EFT contact person changes, it is the responsibility of the owner, partner, or officer who originally completed the EFT form, to revise the contact information on Form EFT.

    If the primary EFT contact person is a third party vendor, they must send a copy of the Power of Attorney when submitting an EFT application.

    If I use the Maryland Tax Connect Portal free online service to file and pay withholding tax or sales tax, do I need to complete Form EFT?

    No, you do not need to complete Form EFT if you use our free online service to file and pay your withholding or sales tax. You must, however, register online, creating your own secure Logon ID Number and Password.

  15. What can I do if I need to make a payment today and I am not set up for EFT?

    If you are making a payment for withholding or sales tax, you can make your payments online using the Maryland Tax Connect Portal. Beginning August 1, 2013, EFT is no longer available for sales and use tax payments.

    If you are making a corporation or motor fuel tax payment, you must mail a check until your EFT application is processed.