Electronic Funds Transfer (EFT) Requirement

Electronic Funds Transfer (EFT) Requirement (G.S. 105-241, 105-236(a)(lb))

Insurance companies paying premium tax of $240,000 or more in a fiscal year are required to remit this tax by EFT beginning with payments made in the following calendar year. Insurance companies will be notified by the Department if required to make EFT payments. Payments received in the wrong form are subject to a penalty equal to five percent (5%) of the tax. For additional information on EFT, refer to the subject, "Payments of Tax by EFT" under "General Administration." Insurers with premium tax liabilities less than $240,000 may choose to pay the tax electronically using ACH Debit or ACH Credit electronic funds transfer after receiving approval from the Department. For additional information, contact the Insurance Premium Tax Unit. Electronic filing of returns is not available.