Unemployment benefits for corporate officers
According to a new law, corporate officers are no longer eligible for unemployment benefits if they or their corporate officer family members are shareholders in the corporation and that corporation is still in business. This includes corporations that have elected unemployment coverage.
Who is eligible for benefits
Corporate officers who lose their jobs (and meet other
eligibility requirements) and:
Do not own at least 10 percent of the stock in their corporation.
Permanently resign or are permanently removed as officers.
Are officers for a corporation that goes out of business.
Who is not eligible for benefits
Corporate officers who:
Own at least 10 percent of stock in the corporation.
Are related to another officer who owns at least 10 percent of stock in the corporation, even if the unemployed officer is otherwise eligible.
Remain officers, even if no wages are being paid.
Relevant laws and rules
Definition of “unemployed”
Corporate officers and ownership
Election of coverage and notification of officers
