Legal & Technical Authority
- State Law: California Revenue & Taxation Code §§ 19900-19906 (AB 150, SB 113) require two pass-through entity elective tax (PTET) payments—one during the tax year and one with the return.
- Federal Context: PTET shifts the state tax to entity level, making it deductible under IRC § 162 and sidestepping the SALT cap in IRC § 164(b)(6).
- Payment Instrument: FTB Form 3893 “Pass-Through Entity Elective Tax Payment Voucher” must be used when you pay by check or money order.
2025 PTET Payment Calendar
| Installment | Due Date (Calendar-Year Entities) | Minimum Amount | How to Pay |
|---|---|---|---|
| Payment 1 | June 15 2025 | Greater of $1,000 or 50 % of 2024 PTET | Web Pay or Voucher 3893 |
| Payment 2 | March 15 2026 (return due) | Remainder of 9.3 % on 2025 CA income | Web Pay or Voucher 3893 |
Miss Payment 1 and the 2025 election is void.
Step-by-Step: Completing Form 3893
- Download the 2025 PDF from FTB (ftb.ca.gov) or pull it from your tax software.
- Entity ID & FEIN
- Line 1a – CA SOS file number
- Line 1b – Federal EIN
- Taxable Year
- For calendar entities, check “2025.”
- Fiscal entities enter MM/DD/YYYY start-end dates.
- Payment Type
- Box A = Payment 1 (during year)
- Box B = Payment 2 (with return)
- Amount of Payment — print two decimals (e.g., “41850.00”).
- Mailing Instructions (if not using Web Pay)
- Make check payable to “Franchise Tax Board.”
- Write Entity ID, tax year, “PTE Tax” on the memo line.
- Mail voucher and check to:
Franchise Tax Board
PO Box 942857
Sacramento CA 94257-0531
- Electronic Option
- Log into FTB Web Pay → “Business” → “Pass-Through Entity Elective Tax (PTET).” Skip the paper voucher.
- Bookkeeping Entry (cash basis)
- Debit “State Taxes—PTET”
- Credit “Cash/Bank”
Worked Example – CodeLift AI, Inc. (S-Corp)
| Item | Value |
|---|---|
| 2024 PTET (for 50 % calc) | $60,000 |
| Projected 2025 CA PTET | $80,000 |
| Payment 1 (June 15 2025) | Max($1,000, $30,000) = $30,000 |
| Payment 2 (Mar 15 2026) | $50,000 |
CodeLift pays the first installment via Web Pay on 6-14-2025. In December, it prepays the $50,000 balance to capture the federal deduction in 2025.
Compliance Tips & Pitfalls
- Pre-Pay Early to deduct in 2025 (cash-basis entities).
- Use a Separate Check—PTET payments cannot be combined with franchise-tax or fee payments.
- Disaster Extensions never move the Payment 1 deadline; pay anyway.
- Track Owner Consents—only consenting owners’ income belongs in the 9.3 % base.
- Verify Posting in MyFTB within 72 hours; call FTB if status shows “pending” > 7 days.
Conclusion
Form 3893 looks simple, yet a single late or mis-coded payment kills your PTET election for the year. Follow the voucher line-by-line, keep proof of mailing or Web Pay receipts, and reconcile payments before issuing K-1s.
Call to Action
Need a double-check on your Form 3893 or a same-day Web Pay walkthrough? Schedule a strategy meeting with Anshul Goyal, CPA EA FCA now: https://calendly.com/anshulcpa/
Disclaimer
This article is for educational purposes only and is not tax advice; consult your own professional for guidance.
Top 5 FAQs
| Question | Short Answer |
|---|---|
| 1. Can I pay Payment 1 after June 15 if I file an extension? | No—late Payment 1 voids the election. |
| 2. Do I mail Voucher 3893 if I use Web Pay? | No—Web Pay replaces the paper voucher. |
| 3. Is the PTET deductible for federal tax? | Yes, at the entity level under IRC § 162. |
| 4. Can I combine PTET with the $800 franchise tax in one check? | No—FTB requires a separate payment and voucher. |
| 5. How long does FTB take to post the payment? | Typically 24–72 hours (Web Pay) or 7–10 days (mail). |
About Our CPA
With 15 years of U.S. and international tax expertise, Anshul Goyal, CPA EA FCA has filed more than 20,000 returns and saved clients over $200 million. He heads Kewal Krishan & Co., guiding SaaS and AI founders through PTET, R&D credits, and venture-scale tax planning.