Why do corporate officers wages have to be reported when they will never be able to collect unemployment benefits?
The North Dakota Unemployment law specifically defines corporate officers and certain limited liability company managers (see previous question) as employees if they work for their respective companies. You may choose to be excluded from coverage by applying to do so during the month of January of any year, or within 60 days of formation of the corporation/LLC. However, you may still be liable for the Federal Unemployment Tax, which will be higher if you are not covered under the state tax. You should take this into consideration before deciding whether to apply to exempt corporate officers from coverage.
