EFTPS Security Checklist for Small Businesses

Background: why a focused EFTPS security checklist matters

The Electronic Federal Tax Payment System (EFTPS) is the IRS-backed service that millions of businesses use to make federal tax payments online. While the platform itself is maintained by the federal government, your company is responsible for how its credentials, bank routing and account numbers, and internal processes are handled. A targeted security checklist turns broad cybersecurity principles into the specific, repeatable routines small businesses need to protect tax payments and avoid costly errors or fraud.

Authoritative guidance for EFTPS is available from the IRS and the official EFTPS site; consult those pages for account-specific updates (IRS: https://www.irs.gov/payments/eftps; EFTPS: https://www.eftps.gov/). For general small-business cybersecurity best practices, see the U.S. Cybersecurity & Infrastructure Security Agency’s guidance for small businesses.

Core checklist: controls every small business should implement

Use the items below as a working checklist. Mark completed items, assign an owner, and revisit the list quarterly.

1. Account setup and registration

• Register on the official EFTPS site only (https://www.eftps.gov/) and confirm your Employer Identification Number (EIN) or Social Security Number (for sole proprietors) is entered correctly. Do not register using emailed links or third-party forms.
• Limit the number of EFTPS accounts and administrative users. Keep a single, dedicated administrative user for scheduling or approving payments.

1. Authentication and access control

• Use strong, unique passwords or passphrases for EFTPS accounts. Follow NIST-aligned guidance: favor longer passphrases over complex-but-short passwords and avoid reuse across services.
• Enable multifactor authentication (MFA) where available. If EFTPS adds additional verification options, adopt them. If your internal process uses an SSO (single sign-on) provider, require MFA at the SSO level.
• Apply the principle of least privilege: give users the minimum access they need. Remove accounts promptly when employees leave or change roles.

1. Device hygiene and network security

• Use company-managed devices for accessing EFTPS. Avoid using public Wi‑Fi or personal devices without proper endpoint protection.
• Keep operating systems, browsers, and security software updated. Schedule automated updates and patch management.
• If employees must work remotely, require a corporate VPN or secure network connection before accessing EFTPS.

1. Bank account safeguards and dual control

• Restrict the bank accounts and routing numbers linked to EFTPS. Use an account dedicated to federal tax deposits when practical.
• Establish dual-control procedures: at least two people should be involved in scheduling and approving large or recurring tax payments. This reduces the risk of unauthorized transfers.

1. Scheduling, buffers, and payment practices

• Schedule payments with a buffer (several business days) ahead of the due date to allow for errors or bank delays. EFTPS allows scheduling up to 365 days in advance.
• Keep a compliance calendar for tax due dates to avoid last-minute rushed payments that can increase mistakes.

1. Monitoring, logging, and reconciliation

• Review EFTPS account access logs and scheduled-payment history monthly. Look for unrecognized logins, IP addresses, or payment changes.
• Reconcile EFTPS payment confirmations with bank statements and your accounting system after each payment.
• Enable account alerts (bank and EFTPS) for payments, failed transactions, or login changes.

1. Employee training and phishing defenses

• Train staff annually on phishing risks, social-engineering tactics, and safe credential handling. Run simulated phishing campaigns if feasible.
• Create written procedures that say: never share EFTPS credentials by email or text, and always route suspicious messages to a single security/contact point.

1. Secure records and backups

• Keep electronic and physical copies of EFTPS confirmations, bank receipts, and registration documents for at least three years. Store them in encrypted, access-controlled systems.
• Back up your payroll and accounting data offline or in a secure cloud that supports versioning.

1. Incident response steps (if you suspect compromise)

• Immediately change EFTPS passwords and notify your internal security contact.
• Contact the IRS or EFTPS support through the official website for account-hold and incident guidance (https://www.irs.gov/payments/eftps and https://www.eftps.gov/).
• Notify your bank and monitor the linked account for unauthorized debits. Place a fraud alert if needed and follow your bank’s dispute process.
• Preserve logs, emails, and evidence for investigators and your CPA; perform a reconciliation of recent payments.

Sample schedule (who does what and when)

• Daily: check bank account entries the business uses for tax payments.
• Weekly: confirm scheduled EFTPS payments for the upcoming 7–14 days.
• Monthly: review EFTPS access logs and reconcile payments with bank statements.
• Quarterly: run a full user-access review and update the compliance calendar.
• Annual: retrain staff, refresh device inventory, and run a tabletop incident response exercise.

Practical rules and secure defaults

• Use a password manager to store unique, strong credentials for EFTPS and related systems.
• Prefer longer passphrases (20+ characters) and avoid periodic forced password rotation unless there’s evidence of compromise. Instead, change passwords immediately when an employee leaves or a breach is suspected.
• Limit administrator-level access to one or two trusted staff and require secondary approval for any new payment profile or bank-account change.

Common mistakes small businesses make

• Treating EFTPS like a “set-it-and-forget-it” tool. Scheduled payments still need regular oversight.
• Over-sharing credentials by using shared email accounts or sticky notes.
• Using personal devices or unsecured networks to access EFTPS.
• Failing to reconcile payments against bank statements and payroll reports—this is how unauthorized transfers are often discovered too late.

Real-world vignettes (what I’ve seen in practice)

In my practice working with over 500 small businesses, common incidents include:

• A payroll clerk clicking a convincing phishing link and exposing stored credentials on a shared workstation. The solution combined immediate credential rotation, bank notifications, and a new dual-control approval process.
• A company linking multiple bank accounts for convenience, which created confusion and missed reconciliations. Consolidating to a single tax-only account and adding a two-person approval workflow stopped the problem.

Links to related FinHelp content

• Read our troubleshooting guide if you see EFTPS payment errors: Troubleshooting Common EFTPS Payment Errors.
• Learn how EFTPS fits with other IRS payment options in: Using IRS Electronic Tools: Direct Pay, Online Payment Agreement, and EFTPS.

Quick FAQ (concise answers)

• Who should be able to access EFTPS? Only designated finance or payroll personnel who need it to schedule and confirm payments.
• How soon should I act if I suspect compromise? Immediately: change credentials, contact EFTPS/IRS via official channels, and notify your bank.
• Can I use a mobile device? Yes, but only on company-managed, updated devices and over secured networks (not public Wi‑Fi).

Checklist printable summary (one-line actions)

• Register only at eftps.gov; keep registration documents safe.
• Use unique passphrases and a password manager.
• Require MFA and least-privilege access.
• Use dual control for approvals; schedule with buffer days.
• Reconcile payments monthly and review access logs.
• Train staff and run phishing simulations.
• Keep backups and an incident response plan.

Sources and further reading

• IRS — EFTPS overview and enrollment: https://www.irs.gov/payments/eftps
• Official EFTPS site (payments portal and support): https://www.eftps.gov/
• U.S. Cybersecurity & Infrastructure Security Agency (small business guidance): https://www.cisa.gov/publication/small-business-cyber-security

Professional disclaimer: This article is educational and does not substitute for personalized legal, tax, or cybersecurity advice. For account-specific or legal concerns, consult a qualified tax professional, your bank, or an IT security consultant.