Can a business owner be on unemployment?
I have a client who has a fashion design business. She has an S Corp in CA and was on payroll till May 2020. Since her business was not doing well, she applied for unemployment, she was qualified and is being paid unemployment. Starting a month ago her business started to normal again and she even hired some interns and one part time employee. But herself is still on unemployment and not on her company’s payroll. Can she do that? When I tried to warn her, she said corporation is a separate entity from the owner and yes I can do that! Could you please advise if this is correct or she would be in trouble for her tax returns next year?
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