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Question

In the state of Kansas I've had an S-Corp set up for about 5 years and the corp is set up with myself and my wife as co-owners. I am listed as president and she is listed as vice-president. To take money out of the business we pay only my wife wages as an employee including paying unemployment taxes every month. On year end tax forms we list her wages as wages paid to officers of the company. My question is this - if the corporation lays her off can she file for unemployment in the state of Kansas? After all, she's been paying into the unemployment fund. Thanks

Submitted: 24 days and 21 hours ago.
Category: Tax
Value: $15
Status: CLOSED
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State/Country relating to question: Kansas

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Accepted Answer

Hi XXXXXXXXXXXX

 

Thank you for using justanswer. This is a good question, and one I've run across before since my husband was once a sole owner of an S Corp.

 

Unfortunately, no state will allow you to collect unemployment if you are the owner or an officer of an S Corp. This is true even if the S Corp goes out of business.

 

I have given you the web address for KS unemployment rules that you may copy & paste into your web browser. See below:

 

 https://www.uibenefits.dol.ks.gov/HelpEligibilDisqual.asp

 

I'm sure this wasn't the answer you were hoping for, but I hope it gives some clarity to you.

 

 

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Expert: Anne
Pos. Feedback: 100.0 %
Accepts: 
Answered: 10/29/2009

Master Tax Preparer

Enrolled Agent with 20 Years Experience specializing Individual and Small Businesses

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