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Division of
Revenue

Business Electronic Funds Transfer


 

Bank Change: If you have recently received a letter about the State’s upcoming bank change from BNY Mellon to JP Morgan Chase, please be advised that we have extended the deadline for the transition from October 15th to November 10th. We encourage you to make the transition to ACH Credit as soon as possible. Instructions for ACH Credit are available under the “Enrollment” box below.  We will be providing a tax portal for withholding and gross receipts tax payments beginning in January 2021 as part of our new system implementation. Additional information about the system implementation is available here.

 

Program Overview

The State of Delaware Division of Revenue currently has two payment options available for the Electronic Funds Transfer of Withholding, Corporate Tentative and “S” Corporation Estimated Tax Payments. The payment options are ACH Debit and ACH Credit. The use of Fedwires is permitted only in an emergency, with prior approval.

Payment of Withholding, Corporate Tentative and “S” Corporation Estimated Taxes are currently being accepted for Electronic Funds Transfer. Payments for notices of assessment are required to be made by check, money order or cash.

Each entity liable for paying State of Delaware withholding tax is required to file its own individual withholding tax return and must file using its own Federal Employer Identification Number. Please do not make payments under one identification number and then issue Forms W-2/1099 or file Form W-3 for multiple identification numbers.

Corporation Requests for Extension, Forms 1100-EXT and 1100S-EXT, as well as, Corporate Final Returns are required to be filed and paid using the appropriate document with a check, money order or cash. Our payment system cannot accept payment of these taxes using Electronic Funds Transfer.

Important Legislative Changes

Mandatory Electronic Funds Transfer for Certain Withholding Agents

Senate Substitute No.1 to Senate Bill 281, mandates that any employer required under the Internal Revenue Code to deposit federal employment taxes by electronic funds transfer on or after January 1, 1996, must begin filing electronically for Delaware in 1997, or one year after the date the employer was required to file electronically for Federal Employment Taxes.

Payment Option – ACH Credit

This option allows the taxpayer to initiate an ACH transaction through their depository, with the ACH Credit option, you initiate an ACH Credit to the state’s bank account for the amount of tax owed.

To initiate an ACH Credit Transaction, you must first contact your bank to determine the origination methods they offer, as well as, their costs. As the originator of these transactions, you will bear the cost.

The ACH Credit transaction is required to be submitted using the standard CCD+ format that has been developed for all states using the electronic collection of taxes.

TXP Addenda Format specifications, and the applicable bank account information will be mailed to taxpayers after the ACH Authorization agreement has been processed.

Fedwire Option

This option allows the taxpayer to initiate a Federal Reserve Wire Transfer for the amount of tax owed. This option is permitted only on an exception basis and in cases in which the ACH Debit or Credit option was tried and found unsuccessful. Fedwires are for emergencies only; approval is required prior to initiation.

Federal Reserve Wire Transfers are generally much higher in cost than the cost of an ACH Credit or Debit. The State of Delaware will not pay the cost of the Fedwires.

Enrollment Information

To participate in the EFT/ACH program, you must complete the ACH for Gross Receipts Form (instructions) or the ACH for Withholding/Corporate Tentative Tax Form (instructions).

Mail the completed Authorization Agreement to the following address:

THE STATE OF DELAWARE, DIVISION OF REVENUE
ATTN: ELECTRONIC FUNDS COORDINATOR
P.O. BOX 8750
WILMINGTON, DE 19899-8750

rev_grossreceiptsach@delaware.gov

FRANCHISE TAXES


Please Note: To make an electronic payment for Franchise Taxes, visit the Division of Corporations’ e-Corp Online Filing site. For assistance or more information on Franchise Taxes, contact the Division of Corporations Franchise Tax Section at (302) 739-3077.


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