This comment was posted to reddit on Oct 13, 2022 at 6:04 am and was deleted within 11 hour(s) and 46 minutes.
[California] Unemployment as an S Corp owner
Set up an S Corp
Your S Corp pays you a salary
Your S Corp pays roughly 7.6% in payroll taxes and you pay roughly 7.6% in payroll taxes. Since you are the company it means you pay the total 15.3% of your salary in payroll tax plus your fed and state PIT.
You file 940, 941, de88...etc quarterly and pay quarterly.
You are a contractor. You are not an employee of anyone except to your own company. Which means you didn't lose a job. You lost a client. So find a new client and keep your company afloat, it's what owning a company is about.
You can claim unemployment, but you are claiming it against yourself. When you do the paperwork, you will not put your client as your employer. Because they didn't employ you. You will put your own company as an employer, and you will have to lay yourself off. So yes, you will be paying yourself.
I highly suggest you get a CPA and have them explain all of this to you. I don't think you understand what being a business owner means.