[Wade_Rogers_Forum_Moderator]

Hi Gwen…you’re right, there doesn’t appear to be anything I can easily get my hands on either. I have been through a closure in years past and these are the items that come to mind, though I’m sure there are more that others may name: legal fees to dissolve the corporation and settle any other claims, preparation fees for the final Form 990, return of unspent grant funds, settlement of lease liabilities (office space, copiers, etc), storage fees for documents to be retained, any software subscriptions (e.g. accounting software) that may need to be maintained during the wind-down, bookkeeping fees during the wind-down.

Hope this remains hypothetical for you!

[Wade_Rogers_Forum_Moderator]

Hi Michael and Mark…I have been through this – twice! – and we followed the same retention periods that were in place when the organization was in operation, maxing out at 7 years. I was surprised by how often we did need to access records in the years following dissolution. In regards to storage, that was the hard part and we were able to rely on Board members to keep things (these were smaller organizations) but it may make sense to determine if there are funds available for a storage facility or, even better, (Mark!) get things digitized.

[Wade_Rogers_Forum_Moderator]

Hi Holly…you ask a good question and just happen to be stumbling upon a fellow North Carolinian! I have generally seen more organizations opt to pay into the fund rather than to self insure simply to reduce the potential for large payments when claims are filed by terminated employees.

In North Carolina, the annual cost to pay into the fund (rather than self insuring) would be (to start) 1% of the first ~$30K (increased annually) of earnings per employee, so around $300 per employee annually to start. The cost would increase or decrease based on your experience with unemployment claims.

Opting to self insure would mean that you would be required to reimburse the unemployment trust fund for any unemployment benefits claimed from terminated employees as well as maintaining an escrow account with the state totaling 1% of annual payroll.

Hope this helps in your decision!

[Wade_Rogers_Forum_Moderator]

Hi Tony, and thanks for coming to the Forum! My inclination would be to allocate based on how the individual worked when they were employed by the organization whether or not they were actually on the payroll that year. I look forward to hearing other opinions as well!

[Wade_Rogers_Forum_Moderator]

Thanks everyone for replying and helping Kara navigate this question! I appreciate your pointing out the effect it can have on employees who may need lead time and help adjusting to the new schedule.