Electronic Funds Transfer (EFT) FAQs
This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue (DOR) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of DOR and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.
This guidance document may change with updated information or added examples. DOR recommends you do not print this document. Instead, sign up for the subscription service at revenue.nebraska.gov to get updates on your topics of interest.
What is new in the e-pay system?
My Account / Login Details / Security Questions
You’ll be asked to choose and provide answers for three security questions the first time you log-in to the new e-pay system. The first question will default to “What is your zip code,” and the answer will be prepopulated with “11111.” You should change this answer. You may also choose a different question.
Make a Payment / Payment Amount
- If you are making payment of a whole dollar amount, you may just enter the dollar amount.
- For example, “300”
- If you are making a payment that includes dollars and cents, you must include a decimal point.
- For example, “300.23”
- Always verify your payment amount on the Review Payment Page before clicking the Confirm button.
Make a Payment / Payment Date
“Pay now” means you have scheduled a payment to be debited as soon as possible. The payment date will appear on your Confirmation page.
All payments must be completed and confirmation number received by 5:00 p.m. central time on the date the return is due to be considered timely.
Electronic Funds Transfer
What is electronic funds transfer (EFT)?
Electronic funds transfer (EFT) is the movement of value (or funds) between financial institutions through the Federal Reserve’s Automated Clearing House (ACH) system. EFT is NOT a way to file your return electronically – only a change in the way you make your tax payments.
Are EFT payments required?
Most EFT payments are voluntary; however, taxpayers with annual payments in excess of mandated thresholds must make EFT payments to avoid penalty. If you are mandated, you will receive written notification from DOR. These notices are also available here.
EFT Payment Options
What are my EFT tax payment options?
Nebraska offers two types of electronic payment methods: ACH Credit and ACH Debit (E-pay via our website or Nebraska Tele-pay via the telephone). The links below give more detail on these payment options.
ACH Credit: You, or your financial institution, must use computer software to create an electronic file in the appropriate ACH file format, and submit this file to the Federal Reserve. This file instructs your bank to "credit" the state's bank. Click here for the ACH Credit User Guide.
ACH Debit: You set up a bank account (or use an existing account) from which the state can withdraw ("debit") funds at your direction, in the amount and on the date that you specify over the Internet. Refer to the E-pay User Guide or Nebraska Tele-pay for more information. DOR contracts with U.S. Bank to supply EFT Debit collection services. U.S. Bank will answer the telephone when you report an ACH debit payment.
Are there any other options for payment of taxes electronically?
Yes. Tax payments can be made by credit card. No registration is required. Credit card payments may be originated through ACI Payments, Inc. (formerly Official Payments Corporation). ACI is the leading provider of electronic payment options for federal, state, and local government entities. Eligible credit cards include VISA, MasterCard, American Express, and Discover. A 2.35% convenience fee, assessed on the amount of tax paid, is charged by ACI. This fee is paid to the credit card vendor, not the state, and will appear on your credit card statement separately from the tax payment. To initiate a credit card payment, click here; or call 800-2PAY-TAX (800-272-9829).
Are federal wire transfers acceptable?
No. DOR does not accept federal wire transfers (fedwires) for tax payments. If you discover late on the due date that you have not made arrangements for your EFT transfer, mail us a check with a typed or hand-written statement indicating what tax is being paid, your Nebraska ID number, the amount remitted, and the period ending date. Your check must be postmarked by midnight of the due date to be timely. If you are mandated to pay by EFT and you pay by check or money order, you will be assessed a penalty of $100.
Which EFT payment option is best for me?
If you are already making ACH Credit payments to other taxing authorities, and you are able to do so using the ACH CCD+ Addendum format, then it may be easiest for you to also make Nebraska tax payments the same way.
If you do not have access to the needed software to create ACH Credit payments in the required ACH CCD+ Addendum format, the ACH Debit option may be best for you. In most cases, ACH Debit is less expensive and more accurate. Most bank transaction fees and the cost for reporting over the Internet or by telephone under the ACH Debit option are free.
What if I have a zero dollar amount due?
You must still file your tax return showing zero liability. It is not necessary to initiate a zero-dollar EFT transfer.
How do I withdraw from the EFT program?
No notification to DOR is needed. If you are statutorily mandated to remit payments by EFT, you cannot make your payments by other methods (except credit card) without incurring penalties.
How do I sign up for these programs?
There is no paper registration form to submit in order to make electronic payments of business taxes. You must be licensed to pay Nebraska business taxes, have your Nebraska State ID Number, and be paying a tax type that is supported in the Nebraska EFT program.
To pay your Nebraska individual income tax liability, you must select the EFT Debit option. On the registration page, be sure to carefully enter your primary social security number into the E-Pay program. Entering an invalid number may delay proper credit for your payment.
How do I log in the first time I use DOR’s E-pay system?
Go to https://revenue.nebraska.gov/businesses/nebraska-e-pay and select the "Make Payment" Button. Once on the Registered User Log In screen, enter your Nebraska ID number without the numbers to the left of the hyphen or any lead zeros to the right of the hyphen. This number will also be your initial password. After clicking on “Log In” you will be prompted to change your password. Enter your Nebraska ID again as the “old password” and then create a new password which will consist of 8 to 16 digits and must be all numbers. You will need to remember this password for future use because only you have access to it.
Do I use the same password when I make payments for two or more tax programs?
Yes, as long as the tax programs share the same Nebraska ID number.
What do I do if I lock myself out of the e-pay system?
Contact Nebraska Taxpayer Assistance at 800-742-7474 (NE and IA) or 402-471-5729. You will be sent a temporary password by email. Once you have logged in using the temporary password, you will be prompted to change your password. Enter the temporary password as the “old password” and then enter your new numeric password of 8 to 16 digits. You will need to enter the new password a second time for verification. NOTE: If other individuals are also using the e-pay system for other tax types under this Nebraska ID, be sure to notify them of the new password so they will be able to process payments for their tax type.
When must I initiate a Debit EFT tax payment to ensure that it is timely?
ACH Debit Option: When using the ACH debit option (e-pay), you enter the date you would like the Nebraska e-pay program to debit your bank account by entering a “Scheduled Payment Date” on your computer or by telephone. Your scheduled payment date cannot be the same day you set up your payment. It must be at least one banking day in the future.
For your payment to be timely, you must enter a scheduled payment date no later than the day after the due date. If the due date falls on a Saturday, Sunday, or legal holiday (not a banking day), you must enter your scheduled payment date as the next banking day. If you wait until the due date to schedule your payment, you must finish the entry and be issued a confirmation number no later than 5:00 PM Central Time. Make sure you select the next banking day as your scheduled payment date.
You can initiate your payment in advance, up to one year before the scheduled payment date. This eliminates the need to wait until the last minute to schedule your payment. We recommend you initiate your tax payment at least one day in advance of the tax due date to allow time for corrections should they be necessary.
ACH Credit Option: When using the ACH credit payment option, your financial institution sends DOR your payment. The financial institution must successfully transfer funds to the state’s bank account no later than the first banking day after the due date. You must contact your financial institution to determine the date to initiate payment with them to ensure your payment is transferred in a timely manner.
What if the due date is on a weekend or a legal holiday?
Regardless of which payment method you choose, if a tax due date falls on a weekend or a legal holiday, the timely filed date becomes the next state business day. If you are using the ACH Debit option, you must complete your call no later than 5:00 p.m. Central Time on the timely filed date and indicate your settlement date to be the following day.
What are my options if I’ve missed the payment due date?
If you discover on or after 5:00 pm Central Time on the due date that you have not made arrangements for your EFT payment, your choices are to make your EFT payment by credit card or send a check or money order. If you are mandated to pay by EFT and you pay by check or money order, you will be assessed a penalty of $100. If you mail in your payment, provide a typed or handwritten statement indicating what tax is being paid, your Nebraska ID number, the amount remitted, and the tax period end date. Your check or money order must be postmarked by midnight of the due date to be timely. Credit card payment transactions must be completed by midnight on the due date to be timely. Late payment is also subject to an assessment of penalty and interest.
How do I know that my payment was received?
If you are using ACH Debit, you will receive a confirmation number at the end of your successfully completed computer payment submission or telephone call. If you have entered your email address on a computer payment, an email will also be sent with the confirmation number.
If you are using ACH Credit, you must contact your bank or other ACH provider to confirm the funds transfer.
What if my payment amount is incorrect?
Log into the payment program and locate the condensed menu feature on the left-hand side of the screen. Your options on this menu are “Make Payment,” “Manage Account,” “Pending Payments,” and “Change Password.” To change a payment, choose “Pending Payments.” You can either “edit” the payment, changing the amount due; or “delete” the payment and restart the process to issue a new payment.
If your payment is no longer in the “Pending Payment” menu, the dollar amount cannot be deleted or adjusted. Contact Nebraska Taxpayer Assistance at 800-742-7474 (NE and IA) or 402-471-5729.
Can I combine multiple tax liabilities into one payment?
No. Regardless of the EFT payment method you choose, you must submit a separate record for each type of tax paid and for each tax period. With the EFT Debit option, you can report multiple tax payments in a single computer submission or telephone call, but these result in separate records sent to the state.
If I pay by EFT, will I still need to file state tax forms?
Under the EFT program, if you are making monthly withholding deposits, you will no longer need to file Nebraska Form 501N. The paper Form 501N will not be mailed once the system recognizes you are remitting payments by EFT. You will still need to file your quarterly Form 941N and your annual W-3N. Both Forms 941N and W-3N are now available for filing via the Internet. Using this option will eliminate the need to mail these forms.
Sales and Use Tax/Retailer's Use Tax:
Your monthly, quarterly, or annual Nebraska Form 10 must be filed, even though you are making your payment electronically. If you are required to make your payments electronically, you will be required to file your Nebraska Form 10 electronically. Using the Internet sales and use tax filing method will eliminate the need to mail in your monthly, quarterly, or annual Nebraska Form 10.
Corporate Income Tax:
If you are paying corporate estimated income tax, you will no longer need to file Nebraska Form 1120N-ES with your remittance; however, you will still need to file your annual Form 1120N or 1120NF return. If you apply for an automatic extension of time, you will still need to file Form 7004N.
Motor Fuels Excise Taxes:
If you are paying state motor fuels excise taxes, you will still need to file your monthly and quarterly electronic (EDI) tax returns.
What if I need to amend a tax return?
A current Nebraska and Local Sales and Use Tax Return, Form 10, remains warehoused on our website until the due date of the return. If an error is discovered, you can restart your return on the efile system.
If the due date has passed, with the exception of certain motor fuels tax programs, all amended tax returns must be submitted on paper forms. An amended Nebraska and Local Sales and Use Tax Return, Form 10, is available on our website under the “Forms” tab. For withholding tax, any correction to the Withholding Tax Return, Form 941N, should be made on line 3 of the next quarterly return (same calendar year). An amended Reconciliation of Income Tax Withheld, Form W-3N, is available on our website under the “Forms” tab.
As with all taxes under this program, if there is a balance due on your amended return, you can make your amended tax payment using EFT; however, your amended return must still be mailed to DOR.