If you are permanently ending operations in a state, or no longer have and do not expect to have employees there, you may want to close your state payroll tax account.

Closing an account helps prevent agencies from expecting future tax returns and can reduce unnecessary notices.

Before you Close Your Account

Before beginning the closure process, make sure you actually need to close the account.

• If you expect to hire employees in that state again within the next year, it's often easier to leave the account open. Warp can continue filing required $0 payroll tax returns to keep it compliant until payroll resumes.

• Consider closing the account only if:

  • Your business is permanently ending operations in that state

  • You no longer have employees there and don't expect to hire again

  • The business itself is dissolving or permanently closing

Before beginning the closure process, make sure you actually need to close the account.

Step 1: Run Your Final Payroll

Process your final payroll and submit any outstanding payrolls. Allow sufficient time for payroll taxes to be filed and deposited.

Recommended: Run your final payroll at least 5 business days before beginning the account closure process.

Step 2: Mark Final Payroll Tax Returns

Most states require your final payroll tax return to be marked as Final. This tells the agency that no additional wages will be reported and that future returns shouldn't be expected.

Depending on the state, this may involve:

• Checking a "Final Return" box

• Entering the final payroll date

• Completing a separate account closure request

Not every state handles this the same way.

Step 3: Contact the State Agency

Each state has its own account closure process. Most agencies require one of the following:

• An online account closure request

• A paper closure form

• A secure message through the state's employer portal

• A phone request

When you contact the agency, ask:

• How do I close my payroll withholding account?

• How do I close my unemployment (SUI) account?

• Are any additional forms required?

• Is a specific effective date needed?

• Will additional final returns be expected?

Step 4: Complete Any Required State Forms

Some states require additional documentation before closing an account, such as:

• An employer account closure form

• A final withholding return

• A final unemployment report

• Business dissolution documentation

You're responsible for completing any state-required forms and submitting them directly to the agency.

Step 5: Resolve Outstanding Balances

Before an agency will close an account:

• All payroll tax returns must be filed

• All payroll tax payments must be made

• Any penalties, interest, or outstanding notices must be resolved

Some states won't finalize a closure until all balances are paid.

Step 6: Save Your Confirmation

Once the account is closed:

• Save the confirmation number

• Download any confirmation letters

• Keep copies of all correspondence and payroll tax filings

These records may be helpful if the agency later issues notices.

Helpful Resources

• Most states publish employer account closure instructions online.

• IRS: guidance on final federal employment tax returns (Forms 941, 940, and others): irs.gov/businesses/small-businesses-self-employed/closing-a-business

• U.S. Department of Labor: directory of state unemployment agencies: oui.doleta.gov/unemploy/agencies.asp

• You can also search "[State] employer payroll tax account closure" or "[State] withholding account closure" to find your state's official instructions.

Need Your State Account Credentials?

If Warp originally registered your payroll tax accounts, our Tax Operations team can provide:

• Account numbers

• Usernames (where available)

• Registration details

• Login information we created on your behalf

This can help you access the state portal and complete the closure process yourself.

Best Practices

• Notify Warp before you plan to close an account

• Run your final payroll before beginning the closure process

• Verify all tax filings have been accepted

• Keep copies of every filing and payment confirmation

• Document all communication with state agencies

• Retain payroll records for the period required by federal and state law

Questions? Please reach out to us at support@warp.co.