9 Components of the E-Direct Online Payroll Tax Filing Software

It is a statutory requirement for every employed person to file their taxes. This is done by employers in most cases and it is always a tough time for payroll departments to capture every employee’s details on paper. Digitalization is, therefore a highly welcome solution for online filing of returns directly or indirectly. E-file Direct is one of the direct payrolling software for submitting taxes to RSS/ IRS.

The main features of the E-File Direct software include:

1. Online Filing:

   The E-File Direct is a user software application for filing 1099 and W-2 forms. It is very effective because it eliminates the high cost of printing forms, saving you the cost of ink and paper.  Inconveniences associated with ordering W-2 and 1099 forms is eliminated by this online tax filing solution that works for a company like yours with over 250 employees.

2. File Creation/ Dispatch:

   This software is preferred for direct payroll tax transmission to the IRS orSSA. The forms are automatically created by the system then the data is filed online and transmitted through the internet to IRS using IRS’s FIRE system. So, basically, you can get these forms online in the programs directory saving time and resources.

3. Transmission Codes:

   There is a transmission control code, TCC, established by the IRS. This code allows files to be filed electronically within 45 days before the E-filing due date. The main form to be filed through the TCC is form 4419.

4. User ID:

   Your company must have a user ID for online remittances.  This user ID is set by the IRS and it gives your business the chance to file your company’s 1099 forms through the payroll 1099 software ETC. The BSO systems allow you to apply for the IRS user ID.

5. Fees:

   The E-File Direct is available for uploading your business’s payroll tax forms. There are no fees charged for transmission of the forms online and you can upload an unlimited number of the forms.

6. Verification of Data:

   This payrolling software is significantly effective in streamlining operations and filing correct data. This is made possible by the software’s ability to view, verify and print files whenever necessary. W-2 state files required for the electronic filing are also created by the software.

7. Automated Filing:

   Using software-generated forms, you can file your annual tax forms electronically using the E-filer. The forms are there to make your working smarter and save time and costs. You also don’t need to enter your employees’ data manually because the form filers are there to resolve this time-consuming activity that can be almost impossible for companies with a big number of employees.

8. Test File:

   This is available for first-time filing of tax returns. You are required to do this only in your first year of filing tax returns online.

9. Ease of Use:

   The E-File direct software gives you the chance to file returns appropriately because of easily understandable formats for the tax returns forms.

In conclusion, you will save a lot of money and time spent on sorting payrolling issues. The payroll software gets rid of unnecessary paper use, saving the company in ink and paper costs for manual entry of employee payroll details. The above outlined featured make this as a suitable tax filing technique.

Author Bio

Peter Higgins is a tax consultant working with the IRS on streamlining tax information for all citizens by using payroll 1099 software ETC with created form filers and user-friendly formats. Read his recent publication on the Business Daily for more information on online tax compliance requirements and procedures.