Do I need to file withholding forms even if I didn’t withhold any taxes?

In most states and at the federal level, employers are generally required to file withholding forms even if no taxes were withheld during the reporting period. Filing a “zero” return ensures that the state or IRS records are accurate and helps maintain compliance.

Failing to file, even when no taxes are withheld, may result in:

• Penalties or fines for non-compliance

• Delays in processing future filings

• Potential audits

Employers should check each state’s rules, as requirements for zero returns can vary.