Unemployment coverage for corporate officers

Corporate officers have specific requirements to be eligible for unemployment benefits. Learn the eligibility rules for corporate officers and how to request voluntary coverage.

Eligibility for corporate officers

A corporate officer's eligibility for unemployment benefits depends on whether you provide voluntary coverage. Corporate officers of for-profit corporations are exempt by default.

See the eligibility rules below to learn more.

Corporate officers without voluntary coverage

Corporate officers without voluntary coverage are not eligible for benefits. You need to notify them in writing that they are not eligible.

You will pay the full rate for federal unemployment taxes (FUTA) on corporate officers without coverage. This may cost more than state taxes, depending on tax rates and salaries.

Corporate officers with voluntary coverage

Corporate officers with voluntary coverage may be eligible for benefits. This also means you need to report and pay taxes on their wages when you file your quarterly report.

However, any corporate officer who owns 10% of stock in the corporation or is related to another officer who owns at least 10% of stock in the corporation may not be eligible for benefits unless the meet 1 of the following:

  • They earn less than 25% of their base-year wages from the corporation.
  • They permanently resign.
  • They are permanently removed as an officer.
  • The corporation dissolves.

How to request voluntary unemployment coverage

Follow the steps below to request unemployment benefits coverage for all corporate officers who earn wages in Washington and meet the requirements under state law.

  1. Decide when you want coverage to start

    Choose the quarter when you want coverage to start. Send us your request by the due date for that quarter. For new employers, the due date is the last day of the month after the quarter you register your business with us.

    Quarter (Q) Due date for existing employers Due date for new employers
    Q1 March 1 April 30
    Q2 June 1 July 31
    Q3 September 1 October 31
    Q4 December 1 January 31

  2. Submit a request form

    To request coverage, submit a voluntary election form (PDF, 293 KB). You can also request a paper form by contacting us at status@esd.wa.gov or 360-902-9360.

    You can email, mail or fax your form. Choose the method that works best for you.

    Email

    Email your form to UIfiles@esd.wa.gov.

    Mail

    Mail your form to:

    Employment Security Department
    UI Tax and Wage Administration/Status
    P.O. Box 9046
    Olympia, WA 98507-9046

    Fax

    Fax your form to 800-794-7657.

  3. Wait for our decision

    We will send you a letter with our decision. If you did not receive a response, email status@esd.wa.gov or call 360-902-9360.

Ending voluntary coverage

Voluntary coverage needs to last at least 2 full calendar years. To end voluntary coverage, you need to postmark, fax or email a written request by January 15. If you miss the January 15 deadline, coverage will continue until January 1 of the next year.

After voluntary coverage ends, a corporate officer may still be eligible for benefits if they were covered and earned enough wages during their base year (the first four of the last 5 completed calendar quarters). Their claims will be based on the wages you reported while they had coverage.

Denial or cancellation of voluntary coverage

We may deny your request for coverage or cancel your coverage if:

  • You are not required to pay federal unemployment taxes (FUTA).
  • Your industry is seasonal.
  • You do not pay your unemployment taxes or file a quarterly report.
  • You give us false information about your business.

If you disagree with our decision, you may file a written appeal within 30 days of the date we mail our decision letter. Learn how to appeal an unemployment tax decision.

Adding or removing corporate officers

You need to submit an Update Ownership Information form (PDF, 748 KB) with your quarterly tax report whenever you add or remove corporate officers (whether or not they earn wages in Washington).

Include the following information about each corporate officer:

  • Name.
  • Social Security number.
  • Percentage of ownership.

If you provide voluntary coverage for your corporate officers, any new corporate officers will also be covered.

People who do not qualify for voluntary coverage

The following types of people are not eligible for voluntary coverage:

  • Out-of-state corporate officers.
  • Board members.
  • Members of a limited liability company.
  • Partners of a partnership.
  • Owners of a sole proprietorship.

Affected businesses

State laws about voluntary coverage for corporate officers only apply to corporations. They do not apply to:

  • Sole proprietors.
  • Partnerships.
  • Limited liability companies (LLCs).
  • Governmental and tribal corporations.
  • Nonprofit corporations, except 501(c)(3) nonprofit corporations.

Relevant laws and rules