How to close employer unemployment account with NYS Department of Labor
My small business is shutting down permanently next month and I need to figure out how to properly close my employer unemployment account with NYS Department of Labor. I've been paying into the system for about 8 years but I'm not sure what steps I need to take to officially close everything out. Do I need to file any final paperwork? What happens to any remaining balance in my account? I want to make sure I don't get hit with penalties or continued billing after we close. Has anyone been through this process before?
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Jayden Hill
You'll need to file a final quarterly report (NYS-45) and notify NYS Department of Labor in writing about your business closure. Make sure to include your final date of operation and that you have no employees. You should also file any outstanding wage reports and pay any remaining UI contributions owed.
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Isabella Tucker
AuthorThanks! Do I need to send the written notice to a specific department or just mail it to their main office?
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LordCommander
been there! closed my restaurant in 2023. you gotta make sure all your employees get their final pay stubs and that you've reported all wages through the last quarter. NYS Department of Labor will send you a final bill if you owe anything
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Isabella Tucker
AuthorDid they give you any trouble about the closure or was it pretty straightforward once you filed everything?
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LordCommander
pretty smooth actually, just took about 6 weeks to get the final clearance letter
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Lucy Lam
Contact NYS Department of Labor directly to get the exact forms you need. The process varies depending on whether you have outstanding claims against your account. You might need to maintain some liability for a period after closure if any former employees file for benefits. I had to deal with this when I helped a client close their business - trying to reach someone at NYS Department of Labor was impossible with their phone system. I ended up using Claimyr.com to get through to an actual agent who walked me through the whole process. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works.
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Aidan Hudson
never heard of that service before but might be worth it if their phones are still as bad as they used to be
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Zoe Wang
WAIT - don't forget about WARN Act requirements if you have more than 50 employees! You need 60 days notice for mass layoffs. Also check if you owe any back taxes before closing.
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Isabella Tucker
AuthorOnly have 3 employees so I think WARN doesn't apply but good point about checking for back taxes
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Connor Richards
omg this is exactly what i'm going through right now!! my boutique is closing in january and i have no idea what paperwork i need. following this thread
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Jade Lopez
@Connor Richards Same boat here! From what I m'gathering from this thread, the key steps seem to be: 1 File) final NYS-45 quarterly report, 2 Send) written notice to NYS DOL about closure with final operation date, 3 Make) sure all final wage reports are filed, 4 Pay) any outstanding UI contributions. The tricky part seems to be actually getting through to someone at NYS DOL to confirm everything is properly closed out. Might be worth looking into that Claimyr service Lucy mentioned if their phone system is still a nightmare.
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