Requesting insurance coverage for corporate officers
Effective January 1, 2014 a legislative law change allows Corporations to request coverage for all corporate officers and pay state unemployment taxes on them if they earn wages in Washington and meet certain criteria. To request coverage, please submit the voluntary election form.
Exempted officers will not receive unemployment benefits if they lose their jobs. Corporate officers who are covered may receive unemployment benefits if they qualify. However, a corporate officer who owns 10% or more of the corporation or is a family member (WAC 192-310-190) of another corporate officer who owns 10% or more of the company may not be eligible for benefits unless the officer permanently resigns or is permanently removed or unless the corporation dissolves. See the frequently asked questions (FAQ) page.
If a corporation does not elect coverage for its corporate officers, it must pay the full rate for federal unemployment taxes (FUTA) on them. This may cost more than state taxes, depending on tax rate and salaries.
Effective dates
Employment Security must receive your voluntary election form by the following dates in order for coverage to take effect in that quarter:
New employers: Existing employers:
1st Quarter: Apr 30 1st Quarter: Mar 1
2nd Quarter: Jul 31 2nd Quarter: Jun 1
3rd Quarter: Oct 31 3rd Quarter: Sep 1
4th Quarter: Jan 31 4th Quarter: Dec 1
Termination Date
A request for termination by the employer must be in writing and postmarked by January 15, immediately following the end of the last year of desired coverage. If your taxes become delinquent, we reserve the right to cancel your voluntary coverage. Coverage must remain in effect for a minimum of two calendar years.
A separate law (RCW 50.12.070) also requires corporations to register with us and provide information about all corporate officers (whether or not they earn wages in Washington). This includes names, Social Security numbers, and percentage of ownership. We will not be able to process a request for exemption of corporate officers unless we have correct registration information about them. In order to provide or update registration information, please submit the Update Ownership Information form.