Online Tax Payment Convenience Fees
I find it utterly amazing that ACH tax payments made online are subject to a "convenience fee" by the taxing authorities.
Indiana for example, allows you to file and pay via ACH (bank transfer/electronic check) unemployment tax online for a $3 convenience fee. So the taxpayer pays more to save the state the expense of opening the mail, posting the payment and sending the check for deposit, and then keying or scanning the paper tax return.
Don't they have it backwards? Shouldn't the convenience fee be charged to the paper filers?
I totally understand charging extra fees for credit card payments since the card processor charges between 2 - 3% of the charge. ACH, on the other hand, averages a bank charge of 25 cents!
ACH tax payments are truly the only way to go, and HomeWork Solutions makes ACH payments for our clients whenever possible. This avoids errors, misapplied payments, and unnecessary late fees. We just think it is silly to pay more to do the state's job for them.
Indiana for example, allows you to file and pay via ACH (bank transfer/electronic check) unemployment tax online for a $3 convenience fee. So the taxpayer pays more to save the state the expense of opening the mail, posting the payment and sending the check for deposit, and then keying or scanning the paper tax return.
Don't they have it backwards? Shouldn't the convenience fee be charged to the paper filers?
I totally understand charging extra fees for credit card payments since the card processor charges between 2 - 3% of the charge. ACH, on the other hand, averages a bank charge of 25 cents!
ACH tax payments are truly the only way to go, and HomeWork Solutions makes ACH payments for our clients whenever possible. This avoids errors, misapplied payments, and unnecessary late fees. We just think it is silly to pay more to do the state's job for them.
posted by Kathleen Webb at
2:45 PM
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