Closing A Business

    By Meg Eynon, Vice President, The Payroll Factory
    Published: 06 MAY 08

    There are certain actions that need to be taken when you are closing a business. For instance, you must file a tax return for the year you go out of business. If     you have employees then you mist file final employment tax returns and fill out change of business status forms with the Pennsylvania Department of Revenue.     In addition to this you need to make sure that all final tax deposits have been made for all payroll taxes related to your company.

    The Internal Revenue Service offers the following checklist to help you through this process. The list is as follows:

    1. Make final payroll tax deposits
    2. File final quarterly or annual employment tax forms (Forms 941, 940, 943, 944)
    3. Issue final wage and withholding information to employees
    4. Report information from W2s issued
    5. File final tip income and allocated tips information return
    6. File final employee pension/benefit plan
    7. Issue payment information to sub-contractors
    8. Report information from 1099s issued

    It is important to notify your payroll provider if you are closing a business. Most payroll providers will take care of these tasks on your behalf if it is part of a     service that you have purchased from them. It is always easier to get these items taken care of in the calendar for which they occur rather than waiting until all     of the filing deadlines.

    For more information on closing a business and what items need to be addressed from an accounting standpoint, please visit the IRS at     www.irs.gov/businesses/small/article/0,,id=98703,00.html