| “I am an officer/director of an S Corp and have been working outside my corp since 2006. My husband, also an officer, still works for our S Corp - I do not collect any salary from our S Corp, only him.”--->I guess you are NOT subject to salary from S corp; you are NO LONGER an EE(officer/SH) of the S corp; the Treasury Regulations provide an exception for an officer of a corporation who does not perform any services or performs only minor services and who neither receives nor is entitled to receive, directly or indirectly, any remuneration. Such an officer would not be considered an employee. If not, you, as a corporate officer, are specifically included within the definition of employee for FICA , FUTA and federal income tax withholding under the Internal Revenue Code. When corporate officers perform services for the corporation, and receive or are entitled to receive payments, their compensation is generally considered wages. Subchapter S corporations should treat payments for services to officers as wages and not as distributions of cash and property or loans to shareholders.
“My question is: Can an "officer/director" from another corp receive Unemployment for working at a different job she is employed at? I will be collecting out of this other corp's Uemployment Ins. NOT mine? Correct?!”---->I guess so as long as you were an employee both places, generally yes you'd be eligible.HOWEVER, As said above, if you are still an officer/director of your S corp, then you need to receive salary from the S corp; S-Corporations must pay their employees a salary(even if your S-Corporation is losing money.)Often, the business owners will work for the S-corporation, and the S-corp must pay owner-employees a reasonable salary. Paying zero wages to an owner-employee is unreasonable. However, as you said, you didn’t collect any salary from the S corp, So, in my opinion, I am NOT sure if you are truly an officer/director of the S corp.In general, depending upon the corporate structure, state laws and the circumstances surrounding a business closure, a business owner may be entitled to receive unemployment benefits. Some owners of an S corporation are eligible to receive unemployment benefits, although only if they meet requirements. S corporation owners who only took profit distributions, and didn’t receive wages, haven’t contributed to unemployment taxes, so they aren’t eligible for unemployment insurance. State law also determines eligibility for unemployment benefits, and 14 states place limits on corporate officers’ eligibility for benefits. Some states offer benefits to corporate officers who receive wages that are subject to federal unemployment taxes, while some refuse benefits to owners who own more than 50 percent of the company’s stock. Additionally, many states don’t allow S corporation owners to collect unemployment insurance benefits if they sold or leased the business against which they’re making unemployment claims.If you, as an S corporation owner, are eligible to receive unemployment, many state departments of labor calculate your benefit as with any other worker, using a measure of past earnings to set weekly benefit amounts. Only earnings subject to unemployment taxes – traditional wages, not profit draws – count toward benefit calculations. Each state uses its own formula to determine benefits, although they’re usually approximately 40 to 50 percent of a worker’s weekly wages, up to a statutory limit set by state law. Because unemployment agency workers individually evaluate each claim, all S corporation owner/workers’ claims may not be approved. Because federal regulations require claimants to be unemployed through no fault of their own, S corporation owners may need to demonstrate that the company went out of business because of economic reasons and its closure wasn’t a personal decision. Many states disqualify owners from receiving benefits if their company closed down and earnings were split among owners. I guess you need to contact Labor Dept of NYS for more information in detail.
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