Is it okay to close my laptop during Folding@Home? Does that ruin the process?

Does it still work in the background when the computer is idle but closed?

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If closing your laptop puts it in standby mode then yes, it won't be running programs anymore. If it just turns off the screen but keeps running (which is not typically the default setting for most laptops) then programs would continue to run.
- The first one.
  
  In your power settings there should be an option "choose what closing the lid does" or something like that, and you can change it to do what you'd like.
  Not sure what os you have but on windows you can just right-click your battery icon in the task bar and choose power options from there. Linux has something similar but I don't recall where exactly.

as long as you complete this work unit in specific time, nothing happens. otherwise, someone else would need to pick it up
so for example if you suspend your laptop for a month, then probably that work unit will timeout
- I see.

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