Difference between EFT and EFW?
The "Mastering Payroll" textbook states that "federal tax deposits cannot be made using a debit or credit card or EFW" (electronic funds withdrawal).
So, what is the difference between electronic funds transfer (EFT) and electronic funds withdrawal (EFW), as all federal tax deposits must be made by EFT unless payment is made with the employment tax return? Thanks.
EFW's are generally made via tax software or other software that is not part of the EFTPS. That's my understanding. Although if you are filing a 941, and owe less than $2,500 for the quarter, you can make the payment for the quarter with the 941 via credit card/debit card, EFW, check or money order. But, that's the only exception, so I''m told.