Electronic Funds Transfer
Electronic Funds Transfer (EFT) is a system of transferring funds from one bank account directly to another by electronic means rather than conventional paper-based payment methods. EFT can occur using the ACH Debit transfer method or the ACH Credit transfer method. The Department currently collects the following taxes through its EFT Program.
- Withholding Tax
- Corporate Estimated Tax
- Utility Franchise Tax
- Utility & Liquor Sales & Use Tax
- Piped Natural Gas Tax
- Alcoholic Beverage Taxes
- Sales & Use Tax
- Machinery and Equipment
- Streamlined Sales Tax
- Tobacco Products Taxes - Cigarette and Other Tobacco Products
- Motor Fuels Taxes - excluding Highway Use Tax
- Insurance Premium Taxes
- Severance Tax
The North Carolina General Statute 105-241(b) permits the Secretary of Revenue to require certain tax payments to be remitted electronically. The Department will determine whether a taxpayer is subject to the electronic payment requirement by reviewing tax payment histories for a twelve consecutive month period on a tax-by-tax basis. As such, a company may be subject to the electronic payment requirement for one tax type, but may not be liable to make payments for another. If selected for the electronic payment requirement, taxpayers will be notified by the Department at the last address of record. The notification will contain information about the electronic payment methods accepted by the Department (please note any of the Department’s electronic payment methods will satisfy the electronic payment requirement). Once selected to make electronic payments for a particular tax type, taxpayers are required to make the electronic payments (regardless of the amount) until released from that obligation by the Department. (An exception to this is Corporate Income taxpayers. A corporation that is required under federal code to pay its Federal-estimated corporate income tax electronically must also pay its State-estimated corporate income tax electronically to the Department of Revenue. These corporations may not be identifiable by the Department for notification).
A taxpayer may enroll on a voluntary basis to pay by ACH Credit or ACH Debit for any of the tax types listed above. Taxpayers may also choose to pay electronically using the e-Business Center or one of our other online filing and payment services. Additional tax types are available for online payment through the Department’s website.
ACH Debit Method
Taxpayers choosing this method authorize the Department to place debit entries against the bank account the taxpayer has designated to be debited. In other words, you authorize the Department to electronically debit a designated bank account. Taxpayers choosing this method should refer to the ACH Debit Instructions and Guidelines for additional information. The ACH Debit payment methods are Touchtone, Voice and Batch payments. Batch is an online payment method that is designed for tax service providers and companies that transmit a batch of 10 or more payments at a time (internet connection required). For additional information on the Batch payment method, a Video Demo of Batch Payment Registration, Video Demo of Batch Payments, and Frequently Asked Questions are available. Once enrolled and approved for the Batch payment method, you can access it by clicking ACH Debit Batch Payment System.
ACH Credit Method
Taxpayers choosing this method elect to originate transactions through their financial institution. In other words, you initiate the transfer of funds to the Department from/with your financial institution. Taxpayers should first contact their financial institution to confirm they offer ACH Credit origination services and any associated costs. Taxpayers choosing this method should refer to the ACH Credit Instructions and Guidelines for proper payment formatting. Upon approval for this payment method, a confirmation letter will be mailed from the Department containing other payment transfer specifications.
Taxpayers enrolling in the EFT program for ACH Debit must complete an ACH Debit Payment Authorization Agreement (EFT-100D). Please note that payments submitted using one of the the Department’s online filing and payment services including the e-Business Center do not require enrollment using the EFT-100D form. Taxpayers enrolling in the EFT Program for ACH Credit must complete an ACH Credit Payment Method Authorization Agreement (EFT-100C).
Questions about EFT
If you need assistance with Electronic Funds Transfer, please contact
the EFT Unit at 1-877-308-9103 Option 2, Option 1, and Option 1 again.
If you need assistance with our online bank draft or credit/debit card payment methods, please call 1-877-308-9103 Option 1.
Assistance is available between the hours of 8:00 a.m to 5:00 p.m. EST, Monday through Friday excluding holidays.
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