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Old 03-23-2009, 11:39 PM
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Join Date: Mar 2009
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Unemployment Benefit for as the owner of S corp

Hi,
Here is the situation

- Worked for a company A for 4 yrs and got laid off on Aug,08.

- Applied for unemployment (NJ) thereafter. Had an interview with the claim examiner and become eligible for benefits from Sept 27,08.

- Formed an S corp (in NJ) on Oct, 15, 08 but continued to collect unemployment as I didn't have any project.

- Got an one month project in 09 (jan 26 - Feb 26) and didn't collect unemployment during that one month. The amount of money that my S corp received for that project was enough to generate a salary for me for about 5 months. So I started paying myself from Jan 26.

-Called the DOL official after 26th Feb to check if I can reopen the claim since though the contract is over.

-She told me I can reopen the claim as long as I'm not putting any hours towards any project (even though my corp is generating pay stubs as it has enough fund) . So she reopened my claim from Mar 1,09.

-When I met my CPA recently to discuss my personal taxes and quarterly for my S-Corp, he raised some concern when he realized that I'm getting a pay stub (thus paying UI) and at the same time claiming unemployment. I told him that it was approved and reopened by a DOL official, he is still not convinced and wanted me to double check.

What should I do even though it was approved my a DOL official? Is she right about the labor law?
Thanks.


Last edited by 11201 : 03-23-2009 at 11:45 PM. Reason: typo


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