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Tina
Tina, Attorney
Category: California Employment Law
Satisfied Customers: 33167
Experience:  JD, 17 years experience & recognized by ABA for excellence in employment law.
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Can a sole owner of a Subchapter S company that received contract

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Can a sole owner of a Subchapter S company that received contract payments from another company collect California unemployment benefits from the company that paid the subchapter company as a contractor?

Hello and welcome,

Did the owner of the corporation pay any unemployment taxes on their income to the state or federal governments (SUTA or FUTA)?

Customer: replied 4 years ago.

I own the corporation that PAID the subchapter S company. Since the Sub S was merely a contractor of services my corporation DID NOT pay any unempolyment taxes. And buy the way, the day that I terminated the contractor he broke into our office, stole our computer and downloaded the information on tour computer.

Hello again, William, and thank you for the additional information.

i am sorry to hear of the destruction of your property.

Since you did not pay any unemployment taxes, there would typically be no basis to seek unenmployment benefits I'm sorry to say.

However, you would typically have grounds to sue the contractor for the destruction of your property. I would also file a police report to document the incident and provide support for a civil suit.

I would file in small claims court if the amount of damages are $10,000 or less.

Here is a link to the small claims court website:

http://www.courts.ca.gov/selfhelp-smallclaims.htm

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Thank you very much and all the best to you,

Tina

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Customer: replied 4 years ago.


Hello Tina,


 


Just so that I am clear, I am somewhat confused with your reply. You said "there would be no basis to collect unemployment benefits, I am sorry to say". Since I do not WANT the contractor to collect unemployment on my company, why did you say that you are sorry to say? His inability to collect should be good news for me, shouldn't it? Bill

Hello again, William.

I thought you were the owner of the S Corporation, so it IS good news for you. :)

It has been my pleasure to assist you. Please remember to press the smiley faces/stars on the right of your screen when we are finished with our communication so I will be credited for my time.

Kindly remember to ONLY rate my answer when you are fully satisfied. If you feel the need to rate anything less than OK, please stop and reply to me via the REPLY TO EXPERT or CONTINUE CONVERSATION button with whatever issue or clarification you may need. I will be happy to continue further and assist you until I am able to explain your concern to your satisfaction. Please also remember that I cannot control whether the law is favorable to you or not, so please don’t shoot the messenger.

Thank you very much and all the best to you,

Tina

Please feel free to bookmark the following link so you can request me to answer any future legal questions you may have:

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Customer: replied 4 years ago.

Hello again Tina,


The reason for my inquiry to you is that I must send a protest to the California EDD challenging this claim. Since the individual owner of the Sub S (and not the Sub S per se) has filed a claim with the CA ECC using his personal SS #, should I even mention the fact that I paid his Sub S or merely state that we never paid the individual?


 


Bill

I would indicate both that the individual was an independent contractor through his S Corporation, and that you paid the corporation and not the individual.

It has been my pleasure to assist you. Please remember to press the smiley faces/stars on the right of your screen when we are finished with our communication so I will be credited for my time.

Kindly remember to ONLY rate my answer when you are fully satisfied. If you feel the need to rate anything less than OK, please stop and reply to me via the REPLY TO EXPERT or CONTINUE CONVERSATION button with whatever issue or clarification you may need. I will be happy to continue further and assist you until I am able to explain your concern to your satisfaction. Please also remember that I cannot control whether the law is favorable to you or not, so please don’t shoot the messenger.

Thank you very much and all the best to you,

Tina

Please feel free to bookmark the following link so you can request me to answer any future legal questions you may have:

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