[quote=CONCHO]So in the scenario you describe, you are not actually unemployed. Analogous situations would be a law firm with no clients, a dentist with no customers, etc… You would only become unemployed if the corporation you own lays you, the employee, off. Unlikely to happen, but not unheard of. Perhaps your company grows, you hire some employees to take over your tasks, and you no longer require your services. At that point, the corporation could lay you off, you could collect unemployment, and — wait for it — you would still get your distribution if the company is profitable.[/quote]
I’m an independent contractor. I just run everything through a corporation. Not looking for employees.
The thing is, if my customer ends the job (i.e. they stop paying my corporation), then I can’t fire myself and collect unemployment from my own corporation. It isn’t allowed – or so I’ve been told. So, why then, should I be paying in ?
The same situation exists for independent contractors working without their own corporation. They work on a “1099” where the client corporation pays them directly as an individual. They still have to pay in to unemployment (not the customer) and are not allowed to draw from it.
