Hi, I have an S corp that I am the owner employee. Unfortunately i lost all my clients and don't have income coming to company. Can I stop payroll for me?

[itsdhiraj]

So far I have been doing payroll using gusto. Now since there is no income coming to my business, can i just stop payroll? do i need to inform state and federal govt about this?

[Anonymous_ · Accepted solution]

In the case where there is no income, a salary does not have to be paid, but you do not need to notify the state or federal government that you are not paying yourself a salary.

[itsdhiraj]

Thank you. Just to clarify I do not have to inform state or fed about no salary that I am earning.  So no paperwork or process to go through this event

[Mike9241]

if your state charges substantial fees for having the corp - franchise taxes or similar taxes or fees and you don't think the company will be revived, perhaps liquidate it to save on the fees and the cost of filing a return. You would need to file papers with the state and IRS but in some states the annual cost for an S-Corp is over $800 in others it's $40. 

[itsdhiraj]

thank you ! appreciate it