Learn about the things you need to do when closing your business.
If you close your business, sell, or change the business entity type (for example, to or from corporation, sole proprietorship, or partnership), you must notify federal and state agencies about the change.
Here’s a guide on what you must do when you’re closing your business in your QuickBooks Online Payroll.
Step 1: Notify the IRS and your state agencies
Let the IRS and your state agency know that you’re closing your business. Check with them for the additional requirements needed when closing a business. To learn more about closing a business, visit the IRS website.
Step 2: Run your final payroll and issue last checks
Pay final wages, bonuses, commissions, reimbursements, or contributions to your employees.
Step 3: Save payroll reports and forms for your records
Keep a copy of your payroll reports, tax forms and payments, and other employment records for at least 4 years.
Step 4: Cancel your payroll subscription
When you cancel your payroll subscription, you need to determine how to pay and file your payroll taxes.
If Automate payroll taxes and forms is turned on
You can request to have us process your final payments and filings. Note that charges may apply. If you choose to handle your own taxes yourself, contact payroll support for assistance.
If Automate payroll taxes and forms is turned off
You can handle your final payments and filings yourself, print your forms and submit it directly to the IRS and state agencies along with your tax payments. Don’t forget to record the tax payments in QuickBooks.
Forms you need to file
- Form 941 and state quarterly forms
- W-2 Copy A and Copies B, C, and 2
- Form 940 and state annual forms
Some of these forms have a specific checkbox or line you need to mark when closing your business and filing your final forms. Check with your accountant or agencies for assistance.
Filing due dates may also vary when closing a business. For any other requirements for paying and filing your taxes when closing a business, check with your state agency.
Access payroll data after cancelation
If Automate payroll taxes and forms is turned on
If you requested to complete your annual filings for you, you’ll have until June 1 of the following year to access your payroll account.
If Automate payroll taxes and forms is turned off
You‘ll have access to your payroll data 6 months after you cancel.