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Mmasini

S - CORP and UNEMPLOYMENT INSURANCE (CA)

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My wife and I are both actors and work regularly but sometimes go through a few months where we are actively looking for work just not getting the jobs.  We always collected unemployment in these down times.  We just opened an S Corp this year to be able to write off more business expenses but we are wondering if we can still file for Unemployment in the downtimes? 

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Who is the employer you are filing your claim for unemployment compensation against and to whom is the employer going to make the payments for your services? 

 

If the employer is paying the work related pay to the S corporation, rather than to you, the corporation (and by extension you) would not be entitled to unemployment compensation.  The corporation would be considered an independent contractor.  You would be an employee of the S corp which would be required to pay the unemployment compensation tax resulting in a benefit if it laid you off.

 

If you want the benefits of incorporation you need to play by corporation rules.

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Your post tells me that you created the corporation without proper advice from legal and tax professionals.  I suggest you seek out such advice before you dig yourself into too deep a hole.

 

P.S. I agree with both prior responses.

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