Managing State Tax EFT Settings and Refund Requests

Overview

This article explains how to manage Electronic Funds Transfer (EFT) settings for state tax payments in Payroll Relief, including how to disable EFT prefunding for state taxes and how to request a refund of prefunded taxes that are still held in Payroll Relief. Use this guidance when a client carries a credit balance with a state tax agency and you want to prevent additional prefunded payments or request a refund of unused prefunded funds.

 

How EFT Tax Payment Settings Work in Payroll Relief

EFT settings in Payroll Relief are configured at the state level rather than at the individual tax level. When EFT is disabled for a state, both State Withholding and State Unemployment Insurance (SUI/SUTA) taxes for that state are switched to manual handling. There is currently no option to disable EFT for only one tax type (for example, SUTA) while leaving the other (such as State Withholding) on EFT. Understanding this behavior is important when deciding how to handle a credit balance with a state tax agency.

 

When to Disable EFT for a State

Consider disabling EFT for a state when:

  • A client has a significant credit balance with the state tax agency that should be used before any additional payments are remitted.

  • You prefer to control the timing and amount of state tax payments manually for that state.

  • You understand that disabling EFT will switch all state taxes (State Withholding and SUTA/SUI) for that state to manual processing.

     

How to Disable EFT for a State

Follow these steps to disable EFT for a state's tax payments:

  1. Select the Gear icon.

  2. Navigate to E-Services > Taxes.

  3. Highlight the line for the state you want to update.

  4. Uncheck EFT Taxes.

  5. Select Save.

     

After Disabling EFT for a State

After EFT is disabled, all taxes for that state will appear as manual in the system. You will be responsible for:

  • Making manual tax payments for that state to the appropriate agency.

  • Recording each manual payment in Payroll Relief so the system reflects the correct payment history.

  • Monitoring the credit balance with the state agency and resuming EFT once the balance has been utilized, if desired.

     

Requesting a Refund of Prefunded Taxes

If prefunded taxes have already been collected for a state and you would like a refund, the steps depend on whether the funds have been remitted to the tax agency or are still held in Payroll Relief:

  • If the funds have already been remitted to the tax agency, contact the tax agency directly to request a refund of the overpayment.

  • If the funds are still held in Payroll Relief, submit an E-Support request to have the prefunded amount refunded. A processing fee applies.

     

How to Submit a Refund Request

A refund of prefunded taxes still held in Payroll Relief is requested through an E-Support request. A processing fee of $145.00 applies.

  1. Select the Support icon on the Global Toolbar in the upper right of the interface to open the Support Request screen.

  2. In the Description field, include the notation Refund of Taxes.

  3. Enter the following required information in the request:

    • Firm Code

    • Client Code

    • Client Name

    • Amount to be refunded

    • Reason for the request

    • Acceptance of the $145.00 Fee

  4. Select Submit to submit the request.

 

Important Considerations

  • Disabling EFT applies to all state taxes for the selected state — not to individual tax types such as State Withholding or SUTA alone.

  • Once EFT is disabled, manual payment and recording responsibilities transfer to the firm.

  • Refund requests are only processed for prefunded amounts still held in Payroll Relief; amounts already remitted must be recovered directly from the tax agency.

  • Provide complete information in the refund request to avoid processing delays.

     

Key Takeaways

  • EFT settings in Payroll Relief are managed at the state level, not by individual tax type.

  • Disabling EFT for a state switches all state taxes for that state (including State Withholding and SUTA/SUI) to manual.

  • EFT is disabled through Gear icon > E-Services > Taxes by selecting the state, unchecking EFT Taxes, and saving.

  • Prefunded taxes already remitted to the agency must be refunded by the tax agency directly.

  • Prefunded taxes still held in Payroll Relief can be refunded by submitting an E-Support request, subject to a $145.00 fee.