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Unemployment for Small Business Owner?
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» From: Janesville, WI

Dear TaxMama:

Can a small business owner claim Federal Unemployment benefits?

Debra

Dear Debra,

Sure. If you're a small corporation, and you're on the payroll and pay the Federal Unemployment taxes AND the State unemployment taxes. You would collect through the state.

But you'd have to prove to the unemployment office folks why you are unemployed - i.e. your business has no contracts or income and no prospect of getting any in the immediate future.

In other words, Debra, being self-employed you're not on payroll, so, NO, you can't collect.

Sorry.

Best wishes,

Eva Rosenberg
Your TaxMama

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