Minnesota · Payroll closure

Close a Minnesota payroll tax account.

Minnesota runs almost everything electronically, which makes the mechanics easy and the deadline unforgiving. You have 30 calendar days from terminating the business to notify the Unemployment Insurance Program, and the notification has to be electronic.

Who you are dealing with

Minnesota Department of Revenue

Handles:
Employer withholding account
System:
e-Services
Form:
The account is closed through e-Services, and withholding accounts can be closed on the actual final return

Agency source

Minnesota Unemployment Insurance Program

Handles:
Unemployment insurance employer account
System:
Employer Self-Service System
Form:
Terminate an Employer Account inside the Employer Self-Service System. Notification must be electronic and within 30 calendar days of terminating the business
Phone:
651-296-6141

Agency source

State fee. $0. Minnesota does not charge to close either account. Outstanding withholding tax and unemployment tax survive the closure.

When you have to close

The clock starts at the termination of the business, and it runs 30 calendar days, not business days. That is one of the tighter windows in this work and it is measured from the business ending rather than from the last payroll or from dissolution paperwork.

Final returns come first

Quarterly wage detail reports have to be submitted through the end of the calendar quarter in which the account is being terminated, so terminating in the first week of a quarter does not remove that quarter's report. On the Revenue side, the withholding account can be closed on the final return itself.

How long it takes

Minnesota does not publish a turnaround. The Employer Self-Service System gives you an immediate record of the termination request, which is the practical answer, and it is the reason the state insists the notification be electronic rather than posted.

What we do

We confirm which accounts are open, file the final returns if they are still outstanding, submit the cancellation to each agency, and follow up until both are confirmed closed. You get the written confirmations. One flat price, and the state charges nothing to close.

What makes Minnesota harder than average

  • Thirty calendar days, and it has to be electronic. Minnesota requires the employer to notify the Unemployment Insurance Program electronically using the Employer Self-Service System within 30 calendar days of the business terminating. A letter does not satisfy it and neither does a phone call.
  • Wage detail is owed for the whole quarter you leave in. Reports run through the end of the calendar quarter in which the account terminates. Closing on the second day of a quarter still leaves that quarter's report to file.
  • The withholding closure hides in the return. Minnesota lets withholding accounts close on the actual final return, which means there is no separate confirmation document unless you keep the return.
  • Two systems, both electronic, neither connected. Revenue e-Services and the Employer Self-Service System are separate logins with separate records. Doing one is not doing the other.

Questions and answers

How long do I have to tell Minnesota the business closed?

Thirty calendar days from the termination of the business, and the notification has to be made electronically through the Employer Self-Service System. Calendar days, not business days.

I terminated at the start of a quarter. Do I still file that quarter?

Yes. Quarterly wage detail reports are required through the end of the calendar quarter in which the account is terminated, however early in the quarter that falls.

Do I need a separate form to close the withholding account?

No. Minnesota withholding accounts can be closed on the actual final return, or through e-Services. There is no separate cancellation document.

Can I close both accounts in one place?

No. Revenue e-Services handles withholding and the Employer Self-Service System handles unemployment. Both are electronic and neither talks to the other.

What do you need from me to start?

The legal name and Minnesota Tax ID, the UI employer account number, the exact date the business terminated, and whether the final withholding return and the current quarter's wage detail have been filed.

Agency details verified 2026-08-03