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Apply Unemployment Compensation as the owner/employee

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johnw2011

Junior Member
What is the name of your state (only U.S. law)? GA
I am the sole owner of the S Corporation, say MYCorp in GA. I am also the only employee of MYCorp. MYCorp files the Quarterly taxes: Form941, FormGA DOL-4N and FormGA G-7M. My CPA files the taxes for MyCorp. The FormGA DOL-4N covers the unemployment insurance.
MYCorp had been subcontracting under PCorp. On the beginning July 2011 PCorp had terminated the contract agreement between PCorp and MYCorp for the reason of lack of the funding for the work which MyCorp had worked.
PCorp is the only client of MYCorp. Thus I (MyCorp) has no income since the contract terminated. MYCorp still exists, just has no revenue.
Can I apply the unemployment compensation with GA Labor Department? I understood MYCorp had paid the unemployment insurance for myself. But one of the rules requires to present the separation agreement between the employer and the employee. I am the employer of MYCorp as well as the employee of MYCorp. There is no separation.

Please make your comments.
Thank you.
JohnWWhat is the name of your state (only U.S. law)?
 
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LdiJ

Senior Member
What is the name of your state (only U.S. law)? GA
I am the sole owner of the S Corporation, say MYCorp in GA. I am also the only employee of MYCorp. MYCorp files the Quarterly taxes: Form941, FormGA DOL-4N and FormGA G-7M. My CPA files the taxes for MyCorp. The FormGA DOL-4N covers the unemployment insurance.
MYCorp had been subcontracting under PCorp. On the beginning July 2011 PCorp had terminated the contract agreement between PCorp and MYCorp for the reason of lack of the funding for the work which MyCorp had worked.
PCorp is the only client of MYCorp. Thus I (MyCorp) has no income since the contract terminated. MYCorp still exists, just has no revenue.
Can I apply the unemployment compensation with GA Labor Department? I understood MYCorp had paid the unemployment insurance for myself. But one of the rules requires to present the separation agreement between the employer and the employee. I am the employer of MYCorp as well as the employee of MYCorp. There is no separation.

Please make your comments.
Thank you.
JohnWWhat is the name of your state (only U.S. law)?
No, you cannot collect unemployment as a majority shareholder/employee.
 

commentator

Senior Member
Call the DOL/unemployment system in GA and ask, they'll tell you the same thing. You cannot lay yourself off. Nothing to stop you from filing a claim, though.
 

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