NYS Department of Labor unemployment obligations if I close my business - do I still have to pay?

Yes, you still have obligations even after closing. You need to file a final quarterly report with NYS Department of Labor and pay any outstanding unemployment insurance taxes. Your employees are definitely eligible for unemployment benefits - business closure is a qualifying reason for UI claims. You should also provide them with their final pay stubs and any documentation they might need for their claims.

I went through this exact situation 2 years ago when I had to close my restaurant. The NYS Department of Labor will want a final report within 30 days of your last payroll. You'll need to pay any remaining UI taxes owed and notify them that you're ceasing operations. Don't ignore this - they can come after you personally even after the LLC is dissolved if you don't handle it properly.

Had trouble reaching NYS Department of Labor about this exact issue last year when my partner and I dissolved our construction company. Kept getting busy signals and long hold times. Eventually found this service called Claimyr at claimyr.com that helped me get through to an actual agent who explained all the final reporting requirements. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Made the whole process much less stressful.

wait so even if the business is totally shut down they can still come after you for unemployment stuff?? that seems really unfair, like kicking you when youre already down

My advice is to also make sure you give your former employees proper notice about filing for unemployment benefits. Some of them might not know they're eligible or how to file with NYS Department of Labor. It's the right thing to do and can prevent them from coming back with questions later.

I'm going through something similar right now with my catering business. One thing I learned is that you also need to notify NYS Department of Labor about your business closure through their online system - there's a specific form for ceasing operations. Also, make sure you keep all your payroll records for at least 4 years even after closing, because they might audit or request documentation later. The employees' unemployment claims could trigger questions about wages paid, so having those records accessible is crucial.

I'm sorry to hear about your business closure, Ravi. As someone who went through a similar situation with my small manufacturing company last year, I can confirm what others have said - you definitely need to stay on top of the NYS Department of Labor requirements even after closing. One thing I'd add is to also consider sending your former employees a brief letter or email letting them know about their unemployment eligibility and providing them with the NYS DOL website and phone number. When I closed my business, I found that being proactive about helping my employees understand their options actually made the whole process smoother for everyone involved. Also, don't forget to cancel your workers' compensation policy once you've handled all the unemployment obligations - that's another cost you can eliminate once everything is properly closed out.