940 Tax

[Accutax Corp]

Are Corp Officers exempt from FUTA?

[Mo Sheets]

Futa

Are Corp Officers exempt from FUTA?

According to the TB 23-6

"For example, wages in some states paid to corporate officers are exempt from state unemployment tax but are taxable for federal unemployment tax purposes."

Hope that helps....

Mo

[Accutax Corp]

940 tax

Thanks, It does seem strange to pay for unemployment tax on myself as the president of the corporation, its not like I could ever file for unemployment because I fired myself.

[BOB W]

Thanks, It does seem strange to pay for unemployment tax on myself as the president of the corporation, its not like I could ever file for unemployment because I fired myself.

I have heard of cases where the corporation dissolved "with no distribution", basically bankrupt, and the officers collected UI payments.

[JohnH]

Bob is right. I've seen it done before. If for whatever reason your corporation could no longer pay you to work and if you otherwise qualified, you'd be entitled to collect unemployment benefits just like any other employee. Hopefully it will never happen, but if you found yourself in that scenario you'd be glad you had paid the unemployment tax over the preceding years.

[Black Bart]

I've heard of it.

Bob is right. I've seen it done before. If for whatever reason your corporation could no longer pay you to work and if you otherwise qualified, you'd be entitled to collect unemployment benefits just like any other employee. Hopefully it will never happen, but if you found yourself in that scenario you'd be glad you had paid the unemployment tax over the preceding years.

About five years ago an insurance salesman who had incorporated came by the office to complain about some payroll tax bill he'd received (he did his own taxes). He vowed to draw unemployment benefits and I got a little chuckle out of it when he said (I quote) "I'll show 'em -- I'm layin' myself off."

[Accutax Corp]

Thanks so much. I love this board

[Black Bart]

Yeah, me too.

Thanks so much. I love this board

It's kinda fun, ain't it?

[ChEAr$]

Fun and

It's kinda fun, ain't it?

you get to meet a lot of nice people.

Harlan Lunsford, president and CEO, etc
Accutax Services, Inc
an Alabama corporation