BIG changes are coming to how the federal government will move money from here on out. Starting this fall, the federal government is going all in on digital. That means no more paper checks for Social Security, tax refunds, or even the payments you send to the IRS. Whether you’re a taxpayer, retiree, or small business owner, this shift to electronic payments is going to affect you. This isn’t something to worry about, but it is something to prepare for so your business doesn’t run into headaches later. In this post, I’ll break down what’s changing, when it’s happening, and how to make sure you’re set up and stress-free before the deadline hits.
Why the Government Is Ditching Paper Checks
The short version? Paper checks are slow, expensive, and risky. The government spent hundreds of millions last year just dealing with paper. On top of that, check fraud and mail theft are way up. Digital payments are faster, safer, and cheaper—and that means savings for the government and fewer problems for people and businesses like yours. When payments move faster and with fewer errors, your business gets paid on time and you don’t have to deal with missing checks or long delays.
What’s Changing and When
Starting September 30, 2025, the federal government will stop sending paper checks for things like Social Security, tax refunds, and contractor payments. On the flip side, they’ll also stop accepting paper checks or money orders for payments made to them. That includes estimated tax payments, tax bills due at filing, fees, fines, loan payments, and any other money your business might owe the government.
If your business sends in quarterly tax payments or gets paid as a government contractor or vendor, you’ll need to switch to a digital method. These include direct deposit, debit or credit cards, digital wallets, prepaid cards, and real-time payment platforms. The key here is to get comfortable using these methods before the deadline hits.
How This Affects Your Business
If you make estimated tax payments the old-fashioned way—with a check—you’ll need to switch to an online system before your final 2025 quarterly payment in January 2026. Same goes for when you file your 2025 return next spring. You won’t be able to send in a check or money order anymore. Payments will need to be made through options like IRS Direct Pay, EFTPS, or another digital tool approved by the IRS.
On the receiving side, if your business works with the federal government, you’ll need to make sure you’re set up to receive payments electronically. That might mean checking your direct deposit info, updating your vendor registration, or making sure your business banking details are all in order.
There Are Some Exceptions—but Not Many
There will be a few rare exceptions for people who don’t have bank access, who are receiving emergency funds, or who work in national security and similar fields. But for most small business owners, there won’t be any getting around this change. Now’s the time to get ahead of it.
What You Should Do Right Now
Start by getting your digital payment systems set up. If you haven’t already, create an EFTPS account or try IRS Direct Pay so you’re ready for next tax season. If you receive government benefits or payments, double-check that your direct deposit info is correct. And if your business sends or receives money to or from federal agencies, make sure those systems are ready to go digital.
This isn’t just about following the rules—it’s about making your business run smoother. You’ll save time, cut down on stress, and avoid last-minute payment issues when these changes roll out. If you need help getting things in order, now’s a good time to reach out. The earlier you prepare, the easier this transition will be.
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