My client has an S Corporation because he was always in an extensive Alternative Minimum Tax situation. He is in the Entertainment Industry. We pay him on a W2 about 60K per year. He has somewhat extended periods of Unemployment - 3 to 4 months. He wants to know if he can claim Unemployment for the times he's not working. He want to know if/how much this will raise his Unemployment tax.
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Now THAT is an entertaining question! (No pun intended. All right, maybe it was.)
Your client is not unemployed. He is employed by his own corporation, at a salary of $60,000 per year. If he attempts to apply for UI benefits, I'm sure they will be denied.Roland Slugg
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More than likely they would deny him. I've had a couple of clients get unemployment being an shareholder/employee of the S-Corp. Only thing is they really were not making enough to pay themselves and the companies went out of business atleast one year later.Comment
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This guy makes money - pretty decent
The guy makes very good money - about 200K per year, but he is just out of work for 3-6 months at a time and wants to know if he can collect during those periods. Also he could go through extended unemployment - though not likely.
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I don't know about your state, but here in Texas if you own the corporation and employed by the corporation, you can't draw unemployment until you shut the corporation down and dissolve it.Jiggers, EAComment
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Re-read Roland Sluggs response. He is not unemployed. He is employed by his S-Corp. I am assuming you are stating that the jobs the S-Corp contracts for are spaced out with periods of no payments coming in. This is not unemployment. You say "he makes $200K per year." Do you mean the Corp has that income? A corporation cannot apply for unemployment benefits. And in most states neither can a single-shareholder S-Corp employee. Check out www.edd.ca.gov/unemployment. Click on FAQ's.Comment
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