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Unemployment benefits for S corporation owner/shareholder?

Allentown, PA |

I am the sole owner and only officer in a small PA s corporation. I own an asphalt paving company that shuts down for 3 months out of the year because all asphalt plants shut down for the winter. During the summer months I take a weekly salary through my payroll company just as all my employees due, therefore all standard payroll taxes are taken out of my check as well as the company paying all applicable employer contribution taxes on my salary. Because I pay in to unemployment myself as well as the company paying in on my salary, am I eligible to collect UC benefits for the three months that the company is shut down?

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Attorney answers 1


No. Under Section 402(h) of PA's unemployment Code, if you are self-employed then then you are are ineligible for benefits. An individual, who, through ownership in stock and his position in the corporation, exercises a substantial degree of control over its operation, is considered a self-employed business person.

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