Section 6: ELECTRONIC FILING PROGRAMS
(a) Mandatory Electronic Funds Transfer Program
Any employer required under the provisions of §6302 of the Internal Revenue Code to deposit federal employment taxes by electronic funds transfer will be required to deposit Delaware withholding taxes by electronic funds transfer. The effective date for this requirement is one year after the employer is required to deposit the federal funds electronically. For example, an employer who is required to deposit federal employment taxes on January 1, 2010 will be required to deposit Delaware withholding taxes by electronic funds transfer on January 1, 2011.
Effective January 1, 1999 House Bill No. 605 imposes a penalty on employers who are required by Delaware Law to deposit withholding taxes by electronic means and who do not do so. The penalty is the lesser of 5% of the amount that should have been electronically transferred or $500.
The EFT program is also available for all withholding agents who are not required to file electronically on a voluntary basis. Contact the Division of revenue for more details. The Electronic Funds Transfer options available to you include:
- ACH Debit: With this option, the Taxpayer initiates a toll-free phone call to the State of Delaware's Data Collector at least one business day prior to due date. This phone call authorizes the State of Delaware to electronically transfer tax payments from the taxpayer's depository into the State's account.
- ACH Credit Option: This option allows the Taxpayer to initiate an ACH transaction through their depository. This ACH transaction will be in the Cash Concentration and Disbursement Plus (CCD+) format and must be initiated at least one day prior to the payment due date.
How to Enroll
To participate in the EFT program, you must complete the State of Delaware Electronic Funds Transfer Program, ACH Authorization Form. This form and instructions are available by contacting : Division of Revenue, Electronic Funds Coordinator, Carvel State Building, 820 N. French Street, Wilmington, DE 19899-8754.
If you have questions, please contact:
EFT Program Information/Processing