FAQs: eSmart Payroll E-File Services
- What is e-file? Why use e-file?
- How does Online e-file work?
- What is the difference between "Upload data" and "Online e-file" ?
- What is the cost for e-file?
- Can I import data from my database without re-typing everything?
- Can I e-file for different companies?
- What forms can I e-file?
- How do I know the IRS or SSA received my data?
- Can I make tax payments electronically?
- What is the requirement to e-file?
- What is the difference between "Business Taxpayer" and "Reporting Agent"?
- Once I e-file, will I be required to continue to e-file?
- What do I do if my e-file is rejected by the IRS?
What is e-file? Why use e-file? (back to top)
Traditionally, payroll tax information is sent to the IRS by either paper or magnetic media (tape, disks). With the advancement of the Internet, businesses and tax professionals can now communicate and exchange data with the government through the Internet. It is accurate, fast and an acknowledgement from the IRS is provided upon receipt of the information.
"E-file" (electronic filing) is sometimes used to refer to magnetic media filing while "Online e-file" is used to describe filings done through Internet.
How does Online e-file work? (back to top)
Since you will do everything at our website, you need to setup your account and enter some basic information before you can use the e-file applications. For the first-time user, the following tasks are required.
- Register Account - a correct e-mail address is required, because it is the primary method of our communication with you). You will manage all of your applications inside your account.
- Setup Company(s) - You can manage multiple companies in your account. The company information you entered will be used for all future e-file applications (941, 940, W2, etc.).
- Enter Employee/Payee information - If you plan to use the W2, 1099-misc or other applications where employee or payee information are required, you can enter them first. Once entered, they can be used for all future applications. You do not need to use all of the employees or payees for an e-File application. You can choose the employees/Payees for any specific e-file application.
- Select an e-File application - After you have established Company and Employee/Payee (if required) information, you then choose an e-File application (941, 940, W2, etc.) and start to prepare the forms for e-file.
- After you are done, you will submit by going through a checkout process. The total charge will be clearly shown in the "Shopping Cart" before you enter the payment information.
- Payment can be made by either credit card, check, or echeck. Please note that an e-File paid by check will not be processed until the check is received by us.
- You will then be able to check the e-file Status online in your account.
When you need to prepare another e-file, you will be able to select a company, an application and start to prepare a return right away.
What is the difference between "Upload data" and "Online e-file" ? (back to top)
C&S Technologies, Inc. offers two different methods for businesses or tax professionals to e-file.
- Upload data - use eSmartForms on your own computer with Microsoft Word and click the "e-file" icon to create an e-file data file, then come to the eSmartPayroll website to submit the data file.
You have total control when using eSmartForms and "upload data" because everything is done on your computer.
- Online e-file - prepare and e-file your payroll data completely at our website. All you need is an Internet connection and a recent version of a web browser (Internet Explorer or Firefox).
- Online e-file requires a reliable internet connection to give you sufficient time to complete the return, save and e-file it. You can print a copy of the return (looks like the Form copy) after you submit for efile.
What is the cost for e-file? (back to top)
There is no setup fee to start to use our e-file service. The cost is computed based on the volume of each batch of transmissions. Significant volume discount is available for tax professionals to prepare and file multiple returns. If you prepare your own data file using eSmartForms or our Online applications, you can view the complete pricing information at our website.
Can I import data from my database without re-typing everything? (back to top)
If you can export data from your database into an Excel worksheet, we have developed utilities that can import data into eSmartForms for printing or e-file. For example, you can import data files into eSmartForm W2 and 1099-MISC directly from an Excel worksheet using our utilities.
Can I e-file for different companies? (back to top)
Yes, information at the eSmartPayroll website is managed by your user account. Once you log into your account, you can prepare and e-file for multiple companies.
What forms can I e-file? (back to top)
Currently, we offer e-file services for Form 941, 940, W2, W2C, 1099-MISC, 1099-MISC correction, California DE9C and more will be added.
How do I know the IRS or SSA received my data? (back to top)
Immediately after you e-filed a return, you can check the filing status at our website. After we receive the acknowledgement from the IRS or SSA, we will post the result with a document control number (DCN to verify receipt of your data by the IRS or a WFID to verify receipt by the SSA ).
Can I make tax payments electronically? (back to top)
Regardless of filing option, businesses can pay electronically through the Electronic Federal Tax Payment System (EFTPS).
What is the requirement to e-file? (back to top)
For Form 941 and 940, you need to submit a Letter of Application (LOA) to the IRS to obtain an efile PIN while the W2, 1099-MISC and others do not.
What is the difference between "Business Taxpayer" and "Reporting Agent"? (back to top)
For Form 941 and 940, each "Business Taxpayer" needs their own efile PIN to e-file while a "Reporting Agent" needs only one PIN to file for multiple companies.
Different processes are used for Business Taxpayers and Reporting Agents to apply for a PIN. Business Taxpayers can prepare a LOA and e-file it to the IRS through our website. The IRS will mail a PIN to the Business Taxpayer in two weeks. Reporting agents, on the other hand, need to mail a LOA with a list of clients (EINs) and signed Forms 8655 to the IRS. The IRS will mail a test PIN to the Reporting Agent. After a successful transmission, the IRS will then mail a production PIN.
A tax professional may or may not be a Reporting Agent. For example, a tax professional may prepare Form 941 for many clients, but each client signs its own form and pays taxes. These clients each can apply for a PIN to e-file and the tax professional is not a reporting agent in this case.
If a tax professional provides payroll services (like ADP) to his/her clients such that the tax professional signs and files all returns. The tax professional can apply for a PIN as a reporting agent and file multiple 941 and 940 returns for his/her clients.
Once I e-file, will I be required to continue to e-file? (back to top)
No. At this time, Form 941 e-file is optional. However, businesses issuing more than 250 W2s or 1099s are required to file the data electronically. The data may be submitted by magnetic media or online e-file. Over the next few years, magnetic media will be phased out and all e-file will be done electronically online.
What do I do if my e-file is rejected by the IRS? (back to top)
Occasionally, an e-file may be rejected by the IRS due to information error. You can check the e-file status at our website. Please visit our website, check the e-file status and reasons for rejection, then revise and re-transmit. For some of the applications (W2, 1099-Misc, e.g.), you will be asked to prepare a new W2 or 1099-Misc correction efile.