An employer is liable for state unemployment tax until a written application for termination is filed, or if the Commission elects to terminate coverage.

An employing unit with regular, domestic or agricultural employment that was not an employer during the preceding year (would not have met the necessary criteria to be subject to TUCA during that year) may file for termination of coverage. The application is filed on form C-71 Application for Termination of Coverage. The application must be filed on or after January 1, but before April 1 of the year for which termination is requested. Based on an approved application the employing unit ceases to be an employer on January 1. An account terminated at the employing unit's request is terminated under Sec 206.004 (a) (1).

1. The employing unit initiates a request for termination. The request is considered timely unless dated by employer after March 31 or the attached envelope is postmarked after March 31.
   
   If the request from the employing unit is a letter, contact the employing unit to obtain a completed Form C-71.
   
   
2. Compare the C-71 to the SER screen.
   
   
3. If the application is filed timely and in the proper form C-71, the Commission must make a finding.
   
   If the facts are not sufficient to make a finding, contact the employing unit by letter, phone, fax or e-mail for additional information. The letter must be approved by your supervisor.
   
   
4. If the application is to be denied, notify the employing unit by letter (2008 PC template letters) along with the C-71 reflecting that the application has been denied.
   
   
5. If the C-71 reflects no liability, close the account (if not already closed) and terminate using the STA screen. To terminate an account using the STA screen:
   
   Key ACCT
   
   Press <Enter>
   
   The record for the account will display.
   
   If the account is not already closed the account needs to be inactivated, key the suspend dates and reason code. Make certain account is being suspended and terminated under the correct type of employment (REG, DOM or AGR).
   
   Key REG  SUSPD DT (Last Qtr of Tax Liability)  NORPTDUE             REAS
          DOM SUSPD DT (Last Qtr of Tax Liability)  NORPTDUE             REAS
          AGR  SUSPD DT (Last  Qtr of Tax Liability) NORPTDUE  AGR  REAS
   
   Key TERM REG  .004 A on 1-1__ (YR in which termination becomes effective)
                      DOM .004 A on 1-1__ (YR in which termination becomes effective)                                 
                      AGR  .004 A on 1-1__ (YR in which termination becomes effective)
   
   The system will automatically produce a letter (FL-42) informing the employer that their account has been terminated.
   
   
6. Give the Status Operations Unit (SOU) the approved C-71 along with a printout of the STA Screen so that the C-71 can be sent with the FL-42. See example of termination under Sec. 206.004 (a) (1) above.
   
   
7. If an account has dual agricultural liability and needs to be terminated this needs to be done by a C-10 to close each section and terminate.
   
   
8. Send a copy of the approved C-71 back to TDO. Mark out old DLN.

The Commission will terminate coverage of an employing unit that has not had employment during the preceding three calendar years. The Commission utilizes a special computer program to terminate accounts that are suspended and have not reported wages in the preceding three years. Although the Act specifies employment, as employment is defined as service and wages, it is assumed that there is no employment if "none reports" are filed. Accounts may also be terminated manually under this section. If the employing unit is liable under two or more subsections use the latest suspend date to determine the termination date. Accounts terminated by the Commission are terminated under Sec 206.004 (a) (2). See example of termination under Sec 206.004 (a) (2) below. To terminate an account using the STA screen:

Key ACCT

Press <Enter>

The record for the account will display.

If the account is not already closed the account needs to be inactivated, key the suspend dates & reason code.

Key REG SUSPD DT  (Last Qtr of Tax Liability)    NORPTDUE                REAS
       DOM SUSPD DT (Last Qtr of Tax Liability)     NORPTDUE               REAS
       AGR SUSPD DT  (Last Qtr of Tax Liability)     NORPTDUE   AGR    REAS

Key TERM REG  .004 B ON 1-1___ (YR in which termination becomes effective)                                          
                   DOM .004 B ON 1-1___ (YR in which termination becomes effective)                                           
                   AGR  .004 B ON 1-1___ (YR in which termination becomes effective)

It should be noted that an employing unit that is terminated loses all previous rights and is treated as a new employer if it becomes liable again.

An Account that has been terminated by mistake can be corrected by deleting the termination. The correction requires 2 days.

1. Day 1: Use the space bar to space over the termination information. This is the only way to delete the termination. The delete key does not delete the termination.
   
   
2. Day 2: Reopen the account.

If the close or termination date is incorrect this can be corrected on the STA screen by keying over the incorrect dates. The termination date does not have to be deleted.