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K
kelsey-viriya-co
July 17, 2024
Question

If we no longer have staff in a particular state and want to close the withholding and unemployment accounts can we do so without causing issue at EOY?

  • July 17, 2024
  • 1 reply
  • 0 views
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1 reply

A
Aldren18
July 17, 2024

Yes, Kelsey, you can close these accounts without causing any issues. I would be happy to assist you with closing your withholding and unemployment accounts for a state where you no longer have staff.

 

You can easily remove the state by inactivating it by going to the Payroll Settings. Before doing that, ensure all final payments and filings are complete. Once confirmed, please follow the steps below: 

 

  1. Go to the Gear icon, then choose Payroll Settings.
  2. Under Company and Account, click Work Locations.
  3. Select the exact state, then mark the Inactive checkbox.
  4. Hit Save.

 

I recommend contacting the state's Department of Revenue for withholding and the Department of Labor for unemployment. Let them know you no longer have employees in the state and want to close your accounts. They will guide you through the process.

 

Furthermore, I've included this article that guides adding or changing employees' work locations in QBO Payroll to manage payroll and track your employee expenses. You can customize these reports to obtain the necessary information.

 

 

This thread is always open if you have other matters to discuss. If you require further assistance or have questions about closing your withholding and unemployment account, reply below or create another post. I want to ensure that all of your concerns are taken care of.

K
kelsey-viriya-coAuthor
July 19, 2024

Good morning, 

 

I see where you said "Yes, Kelsey, you can close these accounts at the end of the year without causing any issues." but would there be any issue with me closing those accounts within the next month? I just want to be sure If I do get those accounts closed we wont have any issues with W2 submissions or anything like that. 

C
CharleneMaeF
July 19, 2024

Closing the withholding and unemployment accounts is crucial to keep your record accurate and updated, Kelsey. I'm here to share additional info about this.

 

When closing these accounts, it is advisable to do this in the new year. Please ensure all the filings are completed to avoid any issues.

 

 Once all the filings are complete, contact the state agency to request closure of the accounts and obtain confirmation documentation for your records.

 

Then, follow the steps below to inactive the work location:

 

  1. Go to the Gear icon and then select Payroll settings.
  2. From Work locations, select Edit.
  3. Click Edit on the work location you want to remove. Make sure to change the status of your staff or change the location to proceed.
  4. From the Active drop-down menu, select Inactive.
  5. Hit Save (Deactivating a state agency stops payments and filings).

 

For more details, please see this article: Set up and manage work locations in QuickBooks Online Payroll.

 

Additionally, you can run various payroll reports in QuickBooks to view important info about your business and employees. It's also useful to ensure your record remains accurate.

 

I'll be right here if you have further questions about payroll taxes.  Feel free to leave a comment below by clicking the Reply button, and I'll get back to you.

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