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Can a Corporate Officer draw unemployment in Michigan?


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#1 Denne

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Posted 27 February 2010 - 11:44 PM

The topic came up with a client today. He is wondering if he shuts down his business....A Corporation....if he can draw unemployment in Michigan. I have been looking online for some information on it and can't find what I am looking for. If he can draw is he limited in anyway? Thanks for your assistance!

#2 kcjenkins

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Posted 28 February 2010 - 01:07 PM

Were the officers salaries subject to the Unemployment tax? If they are not covered, then they can't draw on it. But if their salary was exempt, they probably are not covered. The state Wage and Hour folks can probably tell you for sure.

#3 Jake

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Posted 28 February 2010 - 09:48 PM

I know in my State the corporation neeeds to be closed with the Division of Corporations before a corporate officer/owner can be considered for unemployment.

#4 Denne

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Posted 02 March 2010 - 12:25 PM

I guess that is an indication of how bad things are in Michigan.... The corporation has so little income that the officer's can't draw a salary. They want to stay in business to see if things get better, but need oncome in the mean time. I will call Wage and Hour to see if I can get more information... Thanks!

#5 taxtrio

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Posted 02 March 2010 - 03:35 PM

I guess that is an indication of how bad things are in Michigan.... The corporation has so little income that the officer's can't draw a salary. They want to stay in business to see if things get better, but need oncome in the mean time. I will call Wage and Hour to see if I can get more information... Thanks!



My understanding is that if he is a 2% or more owner then he cannot draw unemployement benefit in Michigan...
even though we have to pay the unemployment tax on the wages anyway.

Taxtrio




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