S-Corp unemployment?

nonguru · #1 (**permalink**) 11-29-2008, 03:27 PM

Can the owner of an s-corp in new york state or PA collect unemployment if the business is making no money but has paid taxes for years? What options are there?

TaxGuru · #2 (**permalink**) 12-03-2008, 09:46 AM

An owner of a S Corporation cannot collect unemployment "if the business is not making money or the officer does not take a salary!"

Unfortunately, in your situation, I cannot see how you would qualify to receive unemployment! No State would allow an Officer/Owner of an S Corporation irrespective of whether or not the Owner has taken a salary, to be eligible for Unemployment. This is generally true for owners of both incorporated and unincorporated businesses.

utharay · #3 (**permalink**) 12-16-2008, 01:34 PM

Quote:

Originally Posted by TaxGuru

An owner of a S Corporation cannot collect unemployment "if the business is not making money or the officer does not take a salary!"

Unfortunately, in your situation, I cannot see how you would qualify to receive unemployment! No State would allow an Officer/Owner of an S Corporation irrespective of whether or not the Owner has taken a salary, to be eligible for Unemployment. This is generally true for owners of both incorporated and unincorporated businesses.

I am confused if you the officer is the only employee in an s-corp and the s-corp pays unemployment tax on every paycheck for that employee why can't the employee claim unemployment? what is the tax payment going to be used for if the employee can't get it because the s-corp is making no money?

jamula · #4 (**permalink**) 08-17-2009, 07:06 PM

Quote:

Originally Posted by utharay

I am confused if you the officer is the only employee in an s-corp and the s-corp pays unemployment tax on every paycheck for that employee why can't the employee claim unemployment? what is the tax payment going to be used for if the employee can't get it because the s-corp is making no money?

I am curious if you got a resolution on this question. Thanks!

flyingkites · #5 (**permalink**) 09-11-2009, 09:11 PM

I don't understand this situation at all.

As a single officer S corporation I pay unemployment tax. The only employee is me.

If I can never claim unemployment why do I pay the tax on my salary? It does not seem fair when unemployment is linked to employment and the tax you pay.

If my company shuts down, can I then get unemployment?

Emanera · #6 (**permalink**) 01-22-2010, 11:34 AM

Quote:

Originally Posted by nonguru

Can the owner of an s-corp in new york state or PA collect unemployment if the business is making no money but has paid taxes for years? What options are there?

I have been a business owner for 17 years.
It's a Travel business and it has not made any money in almost 2 years.
Can I file for unemployment?

Emanera · #7 (**permalink**) 01-22-2010, 12:01 PM

Can I file for Unemployment if I am an S corp OFFICER and my business has now diminished?

TaxGuru · #8 (**permalink**) 01-22-2010, 07:50 PM

I have heard some owners being permitted to receive unemployment compensation. I would take it up with your Local Unemployment Office to get actual confirmation!

Perhaps it depends on your individual situation, so I would think that if you have no other source of income other than salary from the S Corporation, there may be possibility to claim for unemployment compensation.