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Most employment is covered and must be
reported for unemployment insurance purposes, but there are exceptions. Following are some of the types of employment
we are asked about most often.
Examples of COVERED EMPLOYMENT:
Employment is covered regardless of whether it is
FULL-TIME
or PART-TIME. It is also covered regardless of whether it is TEMPORARY or
SEASONAL. Even if the worker knows the job is temporary, the work is still
covered unless otherwise excluded below.
Service of CORPORATE OFFICERS is covered if they receive a
salary. This includes officers of SUB S corporations. (Officers of
corporations may qualify for benefits if they become unemployed through no fault
of their own.)
Example of NON-COVERED
EMPLOYMENT:
FAMILY MEMBERS: In PROPRIETORSHIPS, service performed by the
spouse, parent or child (below the age of 21) of the proprietor is non-covered.
In PARTNERSHIPS, service is non-covered if the worker is a spouse, parent or child (below the age of 21) of EACH PARTNER
(example, the parent of one partner and the spouse of another.) There are no family exceptions for CORPORATIONS.
CO-OP STUDENTS are exempt as long as they are enrolled in
school and are receiving academic credit for the work performed. A co-op student who continues to work between
school terms will be COVERED during those periods.
INSURANCE SALESPEOPLE and REAL ESTATE AGENTS are exempt if
they are paid solely by commission.
CHURCH EMPLOYEES are exempt.
Employees age 18 or younger who distribute NEWSPAPERS and
SHOPPING GUIDES are exempt.
Payment for CASUAL LABOR not in the normal course of business
(example, mowing grass or washing windows on business property) is non-covered
if the payments are less than $50 in a calendar quarter and the same
person works in less than 24 days in a calendar quarter.
Certain other exclusions apply in schools, hospitals,
not-for-profit and governmental employment. Contact the Tax Branch if you have
any questions regarding the coverage of a particular type of employment.
Independent contractors are self-employed and, as such, do not
have to report to Unemployment Insurance. However, many covered employees are
misclassified as independent contractors. The division determines whether an
individual worker is an employee or an independent contractor based on
"common law" rules. For example, we may classify a worker as an
independent contractor if the following rules apply:
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