First: employees do not have UI deducted from their pay. the LLC pays approx 3.4%. But it is true that the LLC does not pay 3.4% of any 1099 or member draw.
So is the following correct:
If my sole income comes through contract work (1099) or as a member of LLC (K1) - I will never be able to make an unemployment claim.
The LLC pays into the UI pool but I suppose the reason is that the amount is based on employee wages (w2) and therefore does not apply to anything else except W2.
to beat this one to death:
Joseph has been a partner at Joe's Law Firm, LLP since its inception. He will never be entitled to unemployment benefits.
Don't get fired Joe. In this case would you get unemployment insurance on your own?
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