A common mistake business owners make – stopping payroll tax filings when no longer running payroll. Just because you cease payroll doesn’t mean tax agencies stop expecting returns.
Even with zero payroll activity, you must continue submitting payroll tax returns showing zero taxes due. This updates the IRS and state that your payroll has ended.
If you simply cancel payroll services without filing final returns, you risk notices and penalties for lapses in compliance. Authorities assume payroll continues unless updated.
Submit payroll tax returns with all zeros to properly close out your payroll reporting. And notify tax agencies that payroll activities have ceased permanently.
Staying on top of compliance prevents headaches like agencies automatically billing prior tax amounts. Don’t assume payroll requirements disappear once payroll stops.
