When employment has discontinued, but is expected in the future, you must choose one of the following two actions to avoid numerous problems:
- You may continue to file the quarterly Unemployment Tax and Wage Reports, indicating on them that no wages are being paid. This will enable your unemployment tax account to remain active for as many as 11 consecutive calendar quarters with no wages being paid, and you will continue to receive all mailings. When employment resumes, simply resume indicating the wages you paid on your reports.
- If you submit Unemployment Tax and Wage Reports indicating that no wages are being paid for 12 consecutive calendar quarters, your unemployment tax account will be suspended automatically. However, you may request that your account be suspended instead of submitting quarterly reports indicating no wages are being paid. Contact the Employer Registration Unit to request a suspension of your account. If your account is suspended automatically or by your request, some mailings will cease during the suspension period, including quarterly Unemployment Tax and Wage Report forms and annual tax rate notices, but your experience rating account will remain intact. When you resume paying wages, immediately notify the Employer Registration Unit to reopen your account. In a few days, you will be notified by mail of your tax rate, which may have changed if your account is reopened in a subsequent calendar year.
Warning: If you stop submitting reports without your account being suspended, this will create delinquent reports and could result in higher future tax rates being computed for your account based on estimated wages.