Direct Pay and the Electronic Federal Tax Payment System (EFTPS) are free services from the US Department of the Treasury. They let individuals and businesses pay the IRS directly from their bank accounts, either online or over the phone, for tax obligations.
What you’ll learn
What you’ll learn
Updated: June 23, 2025
Key takeaways
- The EFTPS and Direct Pay are free online tax payment services provided by the US Department of the Treasury
- Direct Pay is instant, because no registration is required while EFTPS requires a registration process to make payments
- You can use either of the services to pay individual or business taxes but the EFTPS is the better option if the payment is over $10 million and the deadline isn’t urgent
- Direct Pay is suitable if a payment is under $10 million and the submission deadline is immediate
Because both services are used to submit tax payments digitally, they seem similar. However, each platform has unique features, so knowing how they differ can help you choose the payment option that best fits the needs of your business. Below, we’ll break down the key differences between EFTPS and Direct Pay to help you make the choice that best aligns with your business needs.
Key features of EFTPS
Businesses, individuals, tax advisors and payroll companies can pay the IRS online through the EFTPS website. This makes paying and managing your payroll taxes more convenient. That said, no law requires any person or organization to enroll in EFTPS.
Is it safe to use the EFTPS?
“If used properly, the EFTPS is completely safe. This Treasury platform has strong security measures, including personal identification numbers (PINs), password authentication and data encryption. To ensure security, access the site by typing the official web address into your browser, avoid using public Wi-Fi, and be vigilant against phishing emails. As long as these measures are taken, the EFTPS is a safe and reliable method to pay federal taxes.”
— Tom Brock, CFA, CPA
Many taxpayers use the platform because it offers the following services and functionality:
- The EFTPS saves taxpayer information: After enrolling in the EFTPS, your details, such as employer identification number (EIN), banking information and routing number, are saved in the system. So, whenever you need to send money to the IRS, you can just log in and make the payment without having to reenter your taxpayer information.
- You can schedule tax payments in advance: Once you determine your federal tax liabilities, the EFTPS allows you to schedule payments ahead of time for up to 365 days, whether as an employer or individual. Scheduling your tax payments in advance means you’ll stay on track and avoid missing the deadline, even if it slips your mind.
- The EFTPS accepts large payment amounts: With the EFTPS, you can submit up to 10 business tax payments per day. Each payment can be any amount less than $50 million.
- The system is available to use at all times: The EFTPS is accessible around the clock, enabling you to schedule or make online business tax payments on demand. You can also use the service over the phone.
What are the benefits of using EFTPS?
“The EFTPS offers several benefits to users, including convenience, reliability, control and a high-dollar transaction limit. With the EFTPS, you can make or schedule federal tax payments and view payment history on a 24/7 basis from anywhere with an internet connection. The EFTPS is free to use, and, as mentioned previously, it is completely secure – assuming you utilize the platform in a responsible, security-minded fashion.”
— Tom Brock, CFA, CPA
To benefit from these features, you must first register and then log in to your account. The EFTPS enrollment process is as follows:
- Gather relevant information: This includes your EIN, bank account details, business address and name.
- Visit the EFTPS website: Go to the enrollment tab, choose whether you’re paying taxes as a business or individual, enter the requested taxpayer details and then submit.
- Get a personal identification number (PIN): You’ll receive your PIN via US mail in five to seven business days at the address on file with the IRS.
- Request for password: Once your PIN arrives, call 1-800-982-3526 to get a temporary password. After using it to log into your EFTPS account for the first time, you’ll be asked to set a new password.
Types of taxes managed
You can use the EFTPS to pay any federal taxes you may owe the IRS, including the following:
- Corporate income taxes
- Employment taxes — withheld federal income taxes, Social Security, Medicare and more
- Self-employment taxes
- Excise taxes
- Employer’s annual unemployment tax
- Employer’s portion of Social Security and Medicare
- Federal tax deposits
When you make a tax payment, you’ll get a confirmation number via email — think of it as your receipt. You can also opt to get the confirmation number via US mail.
Security features of the EFTPS
To protect your tax information from unauthorized access, the EFTPS uses multi-factor authentication. That means you must go through more than one identity check when logging into the system.
Instead of just entering a password, you also need your PIN and taxpayer identification number (either your EIN or Social Security number). These three security layers make it harder for cybercriminals to break into your EFTPS account.
Potential pitfalls of the EFTPS: complexity for small businesses
You must enroll first to use the EFTPS. Registration can take up to seven business days. If you’re trying to make a last-minute payment and aren’t already registered, the EFTPS may not be the best option for paying the IRS.
Additionally, the EFTPS will not help you compute the amount of tax you need to pay, determine the appropriate tax form to assign to your payment or assess the applicable IRS lookback period. If you’re not sure about these things, it’s easy to make a mistake.
Key features of Direct Pay
When the IRS launched Direct Pay, it was initially meant to help individuals pay their taxes online for free. Today, businesses can also use the service to pay federal taxes and schedule payments in advance for up to 365 days.
Is it safe to use IRS Direct Pay?
“It is very safe to use IRS Direct Pay. This free platform employs strong data encryption to protect your personal and banking information, and it does not store your confidential information.
That said, watch out for phishing scams that mimic the IRS website. Always ensure you’re using the official site to process payments. Avoid clicking on links sent to you via unsolicited emails or texts. The IRS will never send you such emails.”
— Tom Brock, CFA, CPA
The key features of Direct Pay are as follows:
- Immediate payment processing: Unlike the EFTPS, which requires a registration process that can take up to a week, Direct Pay is instant — no enrollment process is required. If you’re facing an urgent tax deadline and haven’t enrolled in the EFTPS, Direct Pay is the quicker option.
- Reliable system availability: Direct Pay is available every day, 12:00 a.m. to 11:45 p.m. You can access it nearly 24/7.
- Limited transaction amount: IRS Direct Pay accepts up to two payments per day for individuals and five payments per day for businesses. Each payment must be under $10 million. If you need to make a larger payment, the EFTPS is a better option.
Another key aspect of Direct Pay is the fact it does not store taxpayer information. Each time you use the system to make a payment, you must provide details like your EIN and business name.
What are the benefits of using Direct Pay?
“The primary benefits of using Direct Pay are that it is free, secure and easy to use. It allows you to process tax payments without having to go through a registration process and create a user account, and it provides immediate confirmation of payments. Moreover, you can access the system on a nearly 24/7 basis, and you can schedule payments in advance.”
— Tom Brock, CFA, CPA
Types of taxes managed
Business taxes you can pay through Direct Pay include those outlined below.
- Corporation income tax
- Employment taxes – withheld federal income tax, Social Security, and Medicare, and more
- Self-employment taxes
- Excise taxes
- Employer’s annual unemployment tax
- Employer’s portion of Social Security and Medicare tax
- Federal tax deposits
As with the EFTPS, you get a confirmation number for each Direct Pay payment. You’ll need the number to look up, change or cancel scheduled payments.
Security features of Direct Pay
Every time you use Direct Pay, you must verify your identity by providing the taxpayer information, including EIN and business name. Because these details aren’t retained in the system, Direct Pay reduces the risk of hackers accessing your sensitive information.
Potential pitfalls: Direct Pay’s limitations for large payments
With Direct Pay, each payment must be under $10 million. If you want to process a payment that exceeds this amount, you’ll need to use other tax submission services, such as the EFTPS.
Choosing the right system for employer tax payments
The EFTPS vs. IRS Direct Pay: Which one is right for your business? The table below summarizes how these two options compare.
| Feature | Direct Pay | EFTPS |
| Registration and signing in | Not required | Required (enrollment takes five to seven business days) |
| Maximum number of payments per day | 5 | 10 |
| Amount limit | Under $10 million | Under $50 million |
| Checking past and pending payments | Use the confirmation number to view one Direct Payment at a time | Check all scheduled payments, plus up to 16 months of payments made through EFTPS |
| Phone payments | Yes (Free automated phone payments available virtually 24/7) | Yes (Free automated phone payments available 24/7) |
| Saving taxpayer information (EIN, business name, etc.) | No | Yes |
Use Direct Pay under one or all of the following circumstances:
- You need to make a quick payment.
- You haven’t enrolled in the EFTPS, and your payment deadline is near.
- You want a simple way of paying taxes without long registration processes.
- You want to make a payment of less than $10 million.
Choose the EFTPS under one or all of the following circumstances:
- You want to make payments that are over $10 million each.
- You don’t want to enter your taxpayer details every time you make a payment.
- You want to track previous and scheduled tax payments easily.
Employers should understand how Direct Pay vs. the EFTPS works
For employers, having a plan in place to make sure your tax liabilities, including payroll tax obligations, are taken care of enables you to avoid potential problems with Uncle Sam. Before making a decision regarding Direct Pay vs. EFTPS, make sure you understand your payroll liabilities and accurately calculate what you owe the IRS. Manually handling the various calculations is inefficient and prone to errors. Payroll solutions, like OnPay, can automate the process, lessening administrative burden and compliance risk.
Learn more about OnPay and see how it simplifies running payroll and calculating taxes.
Take a tour to see how easy payroll can be.
Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.