In the state of California, Justworks reports unemployment taxes under the Justworks unemployment account number. Customers operating in this state will be subject to the Justworks state unemployment insurance rate. If your business filed under your account for the prior quarter, you will need to suspend or close your unemployment account (also known as the Employment Development Department account).
Closing CA Unemployment and Withholding Accounts:
Please follow the steps outlined below to close your CA Unemployment and Withholding accounts:
- Let your current payroll provider know to indicate final return on the quarterly returns for California (Form DE-9) for the final quarter they processed for your business.
- Check “B” for “Out of Business/No Employees.” The date listed should be the day before your Justworks start date.
- Once filed and processed, this designation will instruct California to close both your Unemployment and Withholding Accounts.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.