Closing Your Business
The following information is for California employers who are closing their business.
Worker Adjustment and Retraining Notification (WARN) Act for Plant Closures and Mass Layoffs
Please review the WARN Act information elsewehere on this Web site.
Unemployment Insurance Benefits
California employers are required to provide information about claims for benefits to workers who become unemployed. The EDD publication For Your Benefit - California's Programs for the Unemployed (DE 2320) meets this requirement.
The DE 2320 (available in English, Spanish, Chinese, and Vietnamese) can be:
- Printed from the Forms and Publications section of this Web site
- Ordered using the Internet order form
- Picked up at your nearest Employment Tax Office
Payroll Taxes
If you are selling your business, the buyer may request a Certificate of Release of Buyer (DE 2220) and a reserve account transfer. See Selling Your Business for more information.
If you no longer have employees and will not be reporting wages in any future quarter, you must send EDD a final:
- Payroll Tax Deposit (DE 88/DE 88ALL) with payment,
- Quarterly Wage and Withholding Report (DE 6), and
- Annual Reconciliation Statement (DE 7).
Be sure to check Box D "Out of Business/Final Report" on the DE 6 and Box B "Out of Business/Final Statement" on the DE 7.
You must submit these documents within 10 days of closing your business, regardless of the normal due date.
NOTE: If you pay your taxes by electronic funds transfer (EFT) and will no longer submit EFT payments, please notify the EFT Unit:
Employment Development Department
EFT Unit, MIC 15
PO Box 826880
Sacramento CA 94280-0001
Fax: (916) 654-7441
See Obtaining Tax Forms and Publications to get any forms you may need.