VIRGINIA UNEMPLOYMENT TAX

[TAXMAN]

For my VA preparers Does a farmer who employ's his spouse at less than $3000.00 a qtr owe state unemployment. I cannot seem to find. Federal I found @20k per year owes no futa so would it be safe to say no futa no va unemployment. Thanks for the help.

[Possi]

I employ my own self, I swore I would never fire me, and I have to pay VA Unemployment tax on myself, so I would say "yes." She is every bit an employee to you as I am to myself, as long as she is receiving a W2 from you.

Their response to my absurd question about insuring myself was, "if you close your business, you can collect unemployment." 

It's not a lot of money, but filing is cumbersome. I make the bank do it for me. 

LOL 

I hate accounting, but I love taxes. 

[Gail in Virginia]

22 hours ago, TAXMAN said:

For my VA preparers Does a farmer who employ's his spouse at less than $3000.00 a qtr owe state unemployment. I cannot seem to find. Federal I found @20k per year owes no futa so would it be safe to say no futa no va unemployment. Thanks for the help.

If you look at the Virginia Employment Commission form for determining liability, agricultural employer's don't owe unemployment taxes until they reach $20,000 in wages in one quarter.  Is she the only employee?  Has he ever had to pay unemployment tax for employees?  If the answer to both questions is no, I would say that he does not have to pay unemployment tax on her to VA.  If you look at page two of the VEC form T-FC-27, those questions determine who has to file and pay unemployment taxes.  https://www.vec.virginia.gov/sites/default/files/docstore/vecportal/employer/pdf/fc_27new.pdf

[TAXMAN]

Thank you. She is only employee and tp has never had to pay before. Had no employees to this point.

[Burke]

On ‎6‎/‎24‎/‎2020 at 10:57 AM, Possi said:

I employ my own self, I swore I would never fire me, and I have to pay VA Unemployment tax on myself, so I would say "yes." She is every bit an employee to you as I am to myself, as long as she is receiving a W2 from you.

Their response to my absurd question about insuring myself was, "if you close your business, you can collect unemployment."

 

Really?  Is that true?  I assume you are a corporation.....  Do you have to have a reason for closing?

[Medlin Software, Dennis]

Those that do not treat themselves as employees (when required) with a reasonable wage, found out one of the consequences (PPP loan application).

I was having a relatable discussion with a professional who pays themselves 25k in wages, once a year, for full time work, and 6 digits in distributions.  The person does have earned letters after their name, but kept arguing what they have been doing is not an issue.  It is the old story of do as I say, not as I do... I suppose, as they likely do not advice their customers to do the same.

[Possi]

22 hours ago, Burke said:

Really?  Is that true?  I assume you are a corporation.....  Do you have to have a reason for closing?

Really. That is true. 

I am an S-Corp.

I don't have to have a reason for closing, and I imagine I could have laid myself off and collected as well.

I do pay myself a regular wage on a W2. 

 

[Burke]

So if you are a single more-than-2% owner with a W-2, and decide just to stop operating, you can apply for UI in this state?  But I suppose in that case, you would have to look for another job......

[Lynn EA USTCP in Louisiana]

UI benefits for corporate owners is state specific.  I a pretty sure that here in Louisiana corporate owners (c or s), while required to pay into the system based on their earnings are ineligible to collect UI benefits should the company close its doors.  The basis for that is the corporate owner has decision making powers to determine when/if the entity closes.

 

[Burke]

And that is what I have always thought too about VA.  If I am not mistaken, someone at VEC told me that once......