OT: Unemployment Abuse

[briansd1]

[quote=sdduuuude]

I’m an independent contractor. I just run everything through a corporation. Not looking for employees.
[/quote]

If your S Corporation doesn’t have employees then you’re not paying unemployment insurance premiums.

As an owner of an S corporation, you don’t get paid a salary like other employees would. You take periodic Sub-S draws. And the profits of the corporation pass through to you for income tax purposes. That’s what an S corp is all about.

So, you’re not paying unemployment insurance.

You need to get your taxes, premiums and terminology straight.

[blahblahblah]

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.

It’s called a “self employment” tax

Your corporation can most certainly lay you, the employee, off if there is a business need to do so (no contracts certainly satisfies this condition). And of course if your corporation’s bank account runs dry, the corporation can go out of business and you, the employee can most certainly collect unemployment benefits in that case. Your corporation and you personally are two completely separate entities.

I am not a lawyer although I play one on television 🙂

Self-employment tax is entirely different. It is a federal tax that corresponds to the employer’s contributions to SS and MDCR. Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. Independent contractors are probably not eligible for state unemployment, although I’m not 100% sure on that one…

I actually just re-read your post and it sounds like you are billing your corporation as an independent contractor rather than having payroll from your company with fed/state deductions, etc… so yeah it may be different in your case.

[blahblahblah]

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.

It’s called a “self employment” tax

Your corporation can most certainly lay you, the employee, off if there is a business need to do so (no contracts certainly satisfies this condition). And of course if your corporation’s bank account runs dry, the corporation can go out of business and you, the employee can most certainly collect unemployment benefits in that case. Your corporation and you personally are two completely separate entities.

I am not a lawyer although I play one on television 🙂

Self-employment tax is entirely different. It is a federal tax that corresponds to the employer’s contributions to SS and MDCR. Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. Independent contractors are probably not eligible for state unemployment, although I’m not 100% sure on that one…

I actually just re-read your post and it sounds like you are billing your corporation as an independent contractor rather than having payroll from your company with fed/state deductions, etc… so yeah it may be different in your case.

[blahblahblah]

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.

It’s called a “self employment” tax

Your corporation can most certainly lay you, the employee, off if there is a business need to do so (no contracts certainly satisfies this condition). And of course if your corporation’s bank account runs dry, the corporation can go out of business and you, the employee can most certainly collect unemployment benefits in that case. Your corporation and you personally are two completely separate entities.

I am not a lawyer although I play one on television 🙂

Self-employment tax is entirely different. It is a federal tax that corresponds to the employer’s contributions to SS and MDCR. Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. Independent contractors are probably not eligible for state unemployment, although I’m not 100% sure on that one…

I actually just re-read your post and it sounds like you are billing your corporation as an independent contractor rather than having payroll from your company with fed/state deductions, etc… so yeah it may be different in your case.

[blahblahblah]

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.

It’s called a “self employment” tax

Your corporation can most certainly lay you, the employee, off if there is a business need to do so (no contracts certainly satisfies this condition). And of course if your corporation’s bank account runs dry, the corporation can go out of business and you, the employee can most certainly collect unemployment benefits in that case. Your corporation and you personally are two completely separate entities.

I am not a lawyer although I play one on television 🙂

Self-employment tax is entirely different. It is a federal tax that corresponds to the employer’s contributions to SS and MDCR. Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. Independent contractors are probably not eligible for state unemployment, although I’m not 100% sure on that one…

I actually just re-read your post and it sounds like you are billing your corporation as an independent contractor rather than having payroll from your company with fed/state deductions, etc… so yeah it may be different in your case.

[blahblahblah]

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.

It’s called a “self employment” tax

Your corporation can most certainly lay you, the employee, off if there is a business need to do so (no contracts certainly satisfies this condition). And of course if your corporation’s bank account runs dry, the corporation can go out of business and you, the employee can most certainly collect unemployment benefits in that case. Your corporation and you personally are two completely separate entities.

I am not a lawyer although I play one on television 🙂

Self-employment tax is entirely different. It is a federal tax that corresponds to the employer’s contributions to SS and MDCR. Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. Independent contractors are probably not eligible for state unemployment, although I’m not 100% sure on that one…

I actually just re-read your post and it sounds like you are billing your corporation as an independent contractor rather than having payroll from your company with fed/state deductions, etc… so yeah it may be different in your case.

[briansd1]

[quote=CONCHO]Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. [/quote]

A C corp is different from an S corp. sduuuude has an S Corp.

Essentially and S corp is like a partnership with the benefit of the corporate veil.

[briansd1]

[quote=CONCHO]Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. [/quote]

A C corp is different from an S corp. sduuuude has an S Corp.

Essentially and S corp is like a partnership with the benefit of the corporate veil.

[briansd1]

[quote=CONCHO]Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. [/quote]

A C corp is different from an S corp. sduuuude has an S Corp.

Essentially and S corp is like a partnership with the benefit of the corporate veil.

[briansd1]

[quote=CONCHO]Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. [/quote]

A C corp is different from an S corp. sduuuude has an S Corp.

Essentially and S corp is like a partnership with the benefit of the corporate veil.

[briansd1]

[quote=CONCHO]Since you are an employee in California, your employer (your corporation) is paying state unemployment, state disability, and probably a few other things I can’t remember at the moment on your behalf. [/quote]

A C corp is different from an S corp. sduuuude has an S Corp.

Essentially and S corp is like a partnership with the benefit of the corporate veil.

[blahblahblah]

Brian has it right. I thought he was saying he was an employee of his corp with payroll and state/federal deductions, but it sounds like he’s just 1099-ing it. So if that’s the case he’s not paying any state unemployment, disability, etc… Just federal SSDI and MDCR via self-employment tax.

[blahblahblah]

Brian has it right. I thought he was saying he was an employee of his corp with payroll and state/federal deductions, but it sounds like he’s just 1099-ing it. So if that’s the case he’s not paying any state unemployment, disability, etc… Just federal SSDI and MDCR via self-employment tax.

[blahblahblah]

Brian has it right. I thought he was saying he was an employee of his corp with payroll and state/federal deductions, but it sounds like he’s just 1099-ing it. So if that’s the case he’s not paying any state unemployment, disability, etc… Just federal SSDI and MDCR via self-employment tax.

[blahblahblah]

Brian has it right. I thought he was saying he was an employee of his corp with payroll and state/federal deductions, but it sounds like he’s just 1099-ing it. So if that’s the case he’s not paying any state unemployment, disability, etc… Just federal SSDI and MDCR via self-employment tax.

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