When you close your business, you have to close your tax accounts. One of the accounts many outgoing business owners forget to close is their state payroll tax account.
If you’re closing your business, closing your payroll tax account is an easy step to miss during the process. Luckily, it only takes a couple of minutes to complete – and you could do it on your own.
The Florida Department of Revenue (DOR) makes it easy to change, update or close your existing accounts all from one form. They refer to state payroll taxes as reemployment tax – so that’s what you should look for on the DOR’s Request a Change of Business Name, Address, and/or Account Status form.
Here’s how to close your payroll tax account with the DOR in three easy steps so you can close your business without any stress or holdups.
|1. Gather your information|
|2. Complete the right DOR form correctly|
|3. Make sure your filings and payments are up to date|
1. Gather your information
Before you fill out the form to close your Florida payroll tax account, you’ll need a few pieces of information available:
- Your Employer Identification Number (EIN): Enter your business’ name on the Florida business directory to find your EIN if you don’t know it.
- Your account information: If you don’t know your account information, you can look on your certificate of registration, tax return or documents you’ve received from the DOR.
- The date you want your payroll tax account to close: You’ll have to decide on an effective date for your payroll tax account to close. It’s usually best to close your account right after your last payroll cycle.
Once you have that information readily available, you’re ready to close your payroll tax account.
2. Complete the right DOR form correctly
All updates to existing accounts use one form, which is the Request a Change of Business Name, Address, and/or Account Status form.
Here are the areas you need to pay attention to:
- Select the type of change(s) you are requesting: Mark the “Account Status Change” box.
- Identify your tax account: Enter your EIN and account information.
- Tax type: Mark the “Reemployment Tax” box (and any other types of tax accounts you need close, like sales and use tax).
- Change your account status: For this purpose, select cancel. Then enter the date you want your account to close, which is usually right after your last payroll cycle.
- Contact information: Enter your name, phone number and email address.
After you fill out those fields accurately, you can submit the form.
3. Make sure your filings and payments are up to date
Once you submit your cancellation form, there still may be a few things left to do.
Remember your effective payroll tax cancellation date. You have 15 days after that to file your final payroll tax return and pay any outstanding payroll taxes. Your final return must cover everything from when your last return was filed to the date your account closes.
Your account won’t close until all your filings and payments are up to date.
The bottom line
If you’re closing your Florida business and had an active payroll tax account with the state’s DOR, one of the first steps you need to take is close that account.
All it takes is submitting an online form and checking off a box that signals you’d like to cancel the account. After that, you just need to file your last payroll tax returns and make your final payments.
If you need help closing your payroll tax account, or any part of shutting down your business, schedule a free call with DiMercurio Advisors. Handling your taxes and accounting can be stressful even when closing your business – so having experts in your corner can make the process go smoother and give you peace of mind.