Question about unemployment

[MJK]

If your the owner of the company, can you label yourself as an employee, then lay yourself off at the end of the year?

[Mow Right]

If your the owner of the company, can you label yourself as an employee, then lay yourself off at the end of the year?

As far as I know, no.

[GreenN'Clean]

Are you an Corporation MJK? Cause if you are Incorporated then yes you can lay yourself off and collect unemployment because your an employee to the corporation!!!

[Fantasy Lawns]

MMMMmmm I don't think so .....

As a officer of the Inc ...your more than just an employee ..... especially if you own 100% of the stock that makes you ..... you make all the financial decisions ....

I'd think you would have to "go out of business" too be legally unemployed

Thou I know the laws vary from state to state ....could be different ....but that won't fly in FL

Why would someone really wish too do this anyways ?? I mean how much could it be $$ wise ....

[Eakern & Dog]

I'm not sure. It sounds weird though. I would think that if you could that your umemployment insurance would go up and probably erase whatever money you make out it.......but I have no clue.

[MJK]

Are you an Corporation MJK? Cause if you are Incorporated then yes you can lay yourself off and collect unemployment because your an employee to the corporation!!!

Dang, i'm an LLC.

[DFW Area Landscaper]

In Texas, if you own the corporation and lay yourself off, you are not entitled to benefits. Obviously, there must be some percentage of ownership that triggers it, otherwise employees of large corporations, like IBM, for example, who own stock in IBM, would not be elegible for benefits.

But you have the pay the tax on all your wages anyway.

I called the TWC about this a few years ago and that is what I was told.

Later,
DFW Area Landscaper

[Roger]

I would think that if you could that your umemployment insurance would go up and probably erase whatever money you make out it.......but I have no clue.

Your thinking is on target. I don't know the answer to the question being raised here, namely the owner being laid off. However, I have heard horror stories of a small business involved in handyman work getting stuck. When work was a bit slow during the Winter months, a couple of people were laid off, collected unemployment. This is a case, one owner, 3-4 employees.

The next year, his unemployment insurance went through the roof! He quickly realized he had laid the foundation for paying out more money in insurance than if he would have scaled back hours, or even paid for non-working hours. So, beware of the consequences of such an action, even if it is possible.