Serious employment question

[Notarealsignguy]

All kidding aside. If you are a paid employee in your own company and you have to cut off your paychecks, can you file unemployment? You do pay for unemployment on your own payroll. Not sure if it matters but LLC or S corp structure.

 

[James Burke]

I'm pretty sure that it's: Negatory

 

[MikePro]

negatory. family members that are on the payroll, are considered "owners" as well and not subject to unemployment benefits.

 

[Bradley Signs]

Your attorney, or accountant would be the one to ask. Your Tax Preparer!

 

[Marie]

Here is what I read about the CARES act that Congress is currently trying to get passed: Expanded unemployment insurance (UI) for workers, including a $600 per week increase in benefits for up to four months and federal funding of UI benefits provided to those not usually eligible for UI, such as the self-employed, independent contractors, and those with limited work history.

So if nothing changes to the components of the act, I think that self-employed individuals can file for unemployment.

 

[Reveal1]

Here is what I read about the CARES act that Congress is currently trying to get passed: Expanded unemployment insurance (UI) for workers, including a $600 per week increase in benefits for up to four months and federal funding of UI benefits provided to those not usually eligible for UI, such as the self-employed, independent contractors, and those with limited work history.

So if nothing changes to the components of the act, I think that self-employed individuals can file for unemployment.

Here is the 880 page bill in all it's glory: https://www.documentcloud.org/documents/6819239-FINAL-FINAL-CARES-ACT.html

Guessing LLC member or sole proprietor can only file for the Fed portion, if at all. Here in MO we don't pay into fund so can't file for State unemployment.

Agree partially w/ JBurton but I don't believe you can use proceeds for anything other than payroll, mortgage, rent, utilities and interest on previous loans - see page 20. Glad I'm not a lawyer and best to check with bank making the loan which I intend to do in a few days.

 

[Reveal1]

Shoot, but good to know.

Reminded me of my grandad's favorite saying 'shoot fire and save matches'.

 

[Zendavor Signs]

All kidding aside. If you are a paid employee in your own company and you have to cut off your paychecks, can you file unemployment? You do pay for unemployment on your own payroll. Not sure if it matters but LLC or S corp structure.

Filing unemployment as the owner is very sketchy. Are you really not doing ANYTHING for the business - not answering phones, returning emails, opening mail, etc. Even coming on here and asking questions is doing something for your business.

 

[MikePro]

seems like the most fiscally responsible way to make it through this month-plus, is hope you're part of the mass layoffs and burden the state&insurance companies for money? ...especially if you're receiving a $2k/month bonus to not work. hot damn, sign me up!

 

[Notarealsignguy]

I think the better route is to get the magic loan from the gov., do not terminate anybody, and as long as you have on average the same number of workers that the pandemic started with, you'll only owe the interest due on the loan...
My question is, if I were already considering an equipment purchase, could I get a loan for payroll + equipment, then once the pandemic is over, and my payroll is forgiven, continue to utilize the lower apr for my equipment?

So it is a loan that you don't have to pay back, isn't that more of a grant? I don't want to borrow money and be saddled with debt in 4 months with no revenue to show for it. If it is forgiven than I obviously don't want to ignore free money either. Especially if I can hold onto my employees.

 

[Texas_Signmaker]

So it is a loan that you don't have to pay back, isn't that more of a grant? I don't want to borrow money and be saddled with debt in 4 months with no revenue to show for it. If it is forgiven than I obviously don't want to ignore free money either. Especially if I can hold onto my employees.

That's what the loan is supposed to be for. Keeping and paying your employees. As long as you retain them, the loans are supposed to be forgiven

 

[dypinc]

That's what the loan is supposed to be for. Keeping and paying your employees. As long as you retain them, the loans are supposed to be forgiven

Anyone know where to get more details on this?

 

[fresh]

my company is an s-corp and I get a pay check. I filed for unemployment, answered all the questions truthfully, and they even called me to ask what my relationship to the business is (also answered their questions truthfully.) I was approved. My partner was approved as well. We're not making any money right now.

This is in NJ.

 

[fresh]

Filing unemployment as the owner is very sketchy. Are you really not doing ANYTHING for the business - not answering phones, returning emails, opening mail, etc. Even coming on here and asking questions is doing something for your business.

but you're not getting paid if there is no money or jobs coming in. you could say doing those things are "looking for work." because that is exactly what it is. People aren't responding to emails for the fun of it.

 

[Texas_Signmaker]

Anyone know where to get more details on this?

Apparently you go to a local bank and they make the loan on behalf of the government... but not till the bill passes.

CNBC and Wall Street Journal should be your daily reads especially during this time... WSJ has articles that are 10 times more detailed than what you'd see on C N N or Fox News.

https://www.cnbc.com/2020/03/26/chr...usiness-loans-in-coronavirus-relief-bill.html


(I can't even give you a link to the article on WSJ because in the URL has the word "T R U M P" and the genius that runs this place has a scrip that changes the word to add 2020 to it....thus making the link invalid)

 

[fresh]

(I can't even give you a link to the article on WSJ because in the URL has the word "T R U M P" and the genius that runs this place has a scrip that changes the word to add 2020 to it....thus making the link invalid)

what the actual F U C K? you've got to be kidding me.

 

[Notarealsignguy]

with my luck, ill get the coronavirus at the bank while trying to get the loan

 

[Christian @ 2CT Media]

It depends on your state and how you are classified and what their individual relief is. In AZ they have support for small businesses that have lost more than 80% of their revenue.

 

[dasigndr]

I'm pretty sure that it's: Negatory

Correct! I am an EMPLOYEE of the business , technically owned by my wife and I WILL NEVER BE ELIGIBLE to collect employment insurance benefits. Our accountant advise us of this years ago so I applied to have all my back EI payments returned to me and they did!! However in this world crisis we are in, there are special circumstances I believe. I just have not found them yet.

 

[jimbug72]

Reminded me of my grandad's favorite saying 'shoot fire and save matches'.

My grandad used the NSFW version of this...