Paycheck Withholding

by Nancy
(California)

We formed a small family partnership to handle our parent's finances and care. In 2010 we issued only 2 payroll checks and withheld all of the payroll taxes.

In December of 2011 they issued only 1 payroll check but did not withhold any of the payroll taxes. How do I handle the W-2 form and the quarterly reports for both the federal government and the state of California.

The previous three quarters I filed the necessary payroll reports with the "No Payroll" boxes checked but I'm not sure what to do now.

Thank you for any help you can offer.