BA Harris LLP

State of Idaho Department of Labor Corporate Officer Exemption from Unemployment Tax

Published on Wednesday, September 07, 2011

Recently the Department of Labor changed the rules which required corporations to pay state unemployment tax (SUT) on corporate officer wages. Under the new rules the corporation can make an election to exempt officer wages from SUT. With the increases in unemployment tax over the last few years this change in law could result in a more significant savings. Please be aware that if you take advantage of the new exemption for corporate officer wages you will not be able to collect unemployment benefits. Although many corporate officers would likely be ineligible to ever collect unemployment benefits, there are instances where benefits can and have been paid under the old rules.

The new rule is effective July 1, 2011 and corporations must file an exemption form no later than December 15, 2011 in order to exempt corporate officer wages from SUT.

If you have questions regarding this rule change or would like our assistance in evaluating the applicability of the rule change to your circumstances please feel free to contact our office.

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