Question

Can the owner of a small business receive unemployment compensation (looking for a long answer)

Answer 1

The laws regarding eligibility for unemployment compensation vary from state to state. In some states, business owners do qualify for unemployment compensation. In the state of uncertainty about whether you qualify for the benefit or not, it is always better to contact the local state employment office.

The eligibity requirements to claim unemployment compensation in most states are as follows:

- You must be physically able to work.

- Your must be available for a full time job.

- You must be actively seeking employment.

- You must be unemployed through no fault of your own.

Bi-weekly or weekly forms are required to be filled to claim unemployment compensation.However, despite filling these forms owners of small businesses may not qualify for benefits.

Genrally, if you are a small business owner you are not required to pay unemployment tax. If you do not contribute to your state's unemployment fund, you are not eligible to receive unemployment benefits.

Small business owners can qualify for unemployment benefits if they pay themselves wages. However, this is not the case with most business owners.