Private corporations - exempting corporate officers
What corporate officers of a private corporation may be exempt?
Which corporate officers in a private corporation may be exempt from unemployment-insurance coverage depends on whether or not all the exempted corporate officers are related family members.Are all of the corporate officers being exempted related family members?
Yes--Private corporations may exempt from unemployment-insurance coverage any number of corporate officers who are all related by blood within the third degree of marriage (see next page for explanation). Continue the application process for exemption of corporate officers who are all related.
No--Private corporations in which all exempted corporate officers are not related may exempt from unemployment insurance coverage up to eight bona fide corporate officers. Continue the application process for exemption of corporate officers who are not all related.
Note: Corporations cannot combine the categories of “related” and “non-related” corporate officers to increase the number of exemptions. Even if most of the corporate officers are related, if any of the exempted officers in a private corporation are not related, the corporation must follow the process for exempting non-related corporate officers.
